Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
German retail and wholesale giant Metro Group announced on 20 January 2009 that it will cut 15,000 jobs (5% of its global workforce) over the next three years; 4,000 job losses will occur in Germany. In June 2010, the company announced that Berlin, Rostock and Halle would be the targeted locations affected by its restructuring program.
The group hopes to save EUR 1.5 billion by reducing costs and increasing productivity. about 4,000 jobs will be cut in Germany at REAL, Media Markt, Saturn, Galeria Kaufhof and the wholesaler Cash & Carry.
Metro said the job cuts were part of a restructuring that would move functions of its purchasing and logistics units to its four central divisions (Cash&Carry, Media Markt/Saturn, Real and Galeria Kaufhof) in order to allow them more operational independence. Retailer REAL shall close 27 of its sites till 2010. The retail subsidiary Adler will be sold and IBM will take over the IT-service division of Media Markt/Saturn.
Financial Times quotes chair Cordes saying that Metro is affected by the declining purchasing power of private consumers; but the newspaper notes that Metro Group is doing better than most competitors. Metro shares jumped by 7% when the job cuts were announced.
Eurofound (2009), REAL, MediaMarkt, Saturn, Gaeria Kaufhof, Cash&Carry, Internal restructuring in Germany, factsheet number 67860, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/67860.