Casino Group Announces Major Job Cuts Amidst Restructuring

Overview of Job Reductions

Casino Group has disclosed plans for significant workforce reductions, with potential job cuts ranging between 1,293 and 3,267 positions. The final numbers will depend on the sale outcomes of certain large format stores and logistics warehouses by the end of September. This announcement was made public on Wednesday.

Details of the Proposed Cuts

The proposed "reorganization project" includes 1,293 net job cuts within the group's head office functions, with 554 of these in Saint-Étienne. Post-reduction, the Saint-Étienne headquarters will maintain 1,010 positions out of the current 1,564. Additional cuts could reach up to 1,974 if remaining hypermarkets and supermarkets, along with some logistics platforms, fail to attract buyers.

Employment Figures and Management Comments

As of the end of 2022, Casino employed 200,000 people globally and 50,000 in France. The workforce has since decreased to 28,212 following various sales and before the implementation of employment protection plans (PSE). Philippe Palazzi, the new general director, emphasized that this restructuring is a crucial step towards setting Casino on a new developmental path, with plans to reinvest in retail locations and enhance their human element.

Upcoming Negotiations and Meetings

The social and economic committees of the affected companies have been called to a meeting on May 6 to initiate the information-consultation procedure for the job protection plan. Concurrently, negotiations with trade union organizations will commence, focusing on the content of the job protection plan, including a phase of voluntary departures to minimize forced layoffs.

Background and Future Prospects

This restructuring follows the recent acquisition of Casino by a consortium led by Czech billionaire Daniel Kretinsky. This marks a challenging phase for the new management, especially for Philippe Palazzi, who faces the daunting task of revitalizing the financially troubled group. The upcoming negotiations with trade unions are expected to be particularly challenging, reflecting the broader transformation plan essential for the group's sustainability.