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.
On 12 January 2011, FNAC, a French retail chain offering cultural and electronic products, announced 500 job cuts worldwide, as part of a €80 million cost-saving action plan in response to a decrease in sales. The cost-saving plan involves the freeze of recruitment, a wage restraint policy and the cutting of 310 jobs in France and another 200 throughout the countries where FNAC operates. The restructuring is due to the worsening of the economic crisis over the last six months leading to a significant decrease in household spending, which has affected FNAC's markets in Europe.
The job cuts will affect mainly support functions at headquarters and in stores, which will largely be reorganised. Sales staff in stores and the Internet website Fnac.com teams, which are at the heart of FNAC's development strategy, will not be affected by the restructuring.
The management has stated that the job losses will be implemented through voluntary departures and staff reassignment within the Group will be encouraged. According to the management the restructuring is leading to the creation of new jobs in the relocation of certain support functions, which will be offered first to the affected employees. FNAC management is also said to be committed to provide support to redundant employees in their search for employment or further training. A comprehensive redundancy package will be put forward and discussed with staff representatives.
FNAC, a subsidiary of the French PPR luxury group, employs more than 17,000 people and operates 158 stores (at December 2011): 85 in France and 73 elsewhere in the world (Belgium, Brazil, Spain, Italy, Portugal, Switzerland and Morocco).
Eurofound (2012), FNAC, Internal restructuring in World, factsheet number 72957, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/72957.