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.
Cultural and entertainment goods retailer FNAC announced 310 job cuts in France out of 1,500. The job cuts are reported to affect mainly support functions at headquarters and in stores. This is part of a global restructuring plan involving 510 redundancies in the frame of a €80 million cost-saving plan in response to a decrease in sales and operating profits (see here).
Outside France, 200 jobs will be eliminated through non-replacement. The company intends to implement the remainder of the job cuts through voluntary departures. Sales staff and fnac.com employees will not be affected by the job cuts.The restructuring will include other measures including a freeze on recruitment and reduction of general charges through reviewing technical service contracts and leases.
FNAC, a subsidiary of the French PPR luxury group, employs more than 17,000 people and operated 158 stores in the end of 2011 of which 85 in France and 73 worldwide (Belgium, Brazil, Spain, Italy, Portugal, Switzerland and Morocco).
UPDATE, 29/03/2012 - Staff representatives have taken the firm to court for failing to supply clear information on the reorganisation of support functions and the effect of the restructuring on the remaining staff. In a recent hearing, the High Court postponed its verdict on the downsizing plan until 3 May 2012.
Eurofound (2012), FNAC, Internal restructuring in France, factsheet number 72958, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/72958.