Carrefour Announces Reorganization, Voluntary Redundancies
23 January 2018 - 7:30PM
Dow Jones News
By Anthony Shevlin
French retailer Carrefour SA (CA.FR) on Tuesday announced a
sweeping reorganization including job reductions and potential
store closures aimed at shoring up its faltering performance.
The company plans to offer 2,400 employees voluntary
redundancies and to divest 273 ex-Dia stores. It has also made
agreements for new partnerships that it expects will strengthen its
e-commerce, last-mile delivery and Chinese operations.
Carrefour last week cut its earnings outlook as it continues to
struggle with sluggish domestic performance, challenges outside
France and tough digital competition.
Carrefour will offer about 2,400 employees a
voluntary-redundancy package at its headquarters in the
Ile-de-France region. As part of this, Carrefour will close its
Boulogne headquarters and scrap plans to build new headquarters in
Essone. The company currently employs 10,500 people at its head
office.
If it doesn't find a buyer for the 273 former Dia stores it
plans to divest, they will be closed.
Carrefour also announced a strategic cooperation agreement with
Tencent Holdings Ltd (0700.HK) in China, as well as a potential
investment by both Tencent and Yonghui Superstores Co. Ltd
(601933.SH).
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
January 23, 2018 03:15 ET (08:15 GMT)
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