Type
Internal restructuring
Country
France
Region
île de France;
Location of affected unit(s)
Sector
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49.31 - Urban and suburban passenger land transport

1,000 - 1,100 jobs
Number of planned job losses
Job loss
Announcement Date
19 October 2018
Employment effect (start)
1 October 2019
Foreseen end date
1 January 2024

Description

RATP, public provider of transport at the Ile-de-France, has announed a reorganisation that will lead to cut from 1,000 to 1,100 positions by 2014. The job cuts will affect the support functions that currently employ 5,000 people in the Île-de-France region. In total, RATP group employs 61,000 employees of which 44,000 in the Île-de-France region. Management wants to reduce costs before the arrival of competitors. Indeed, on the Parisian bus market, the public company will lose its monopoly at the end of 2024. To cope with this changes, RATP has launched a performance plan, called Diapason. According to Les Echos, its starting point is that the cost of support functions represents 20% of RATP's operating expenses, compared with around 15% for its competitors. The objective is to reduce this ratio to 17% by 2024. As part of this performance plan, the RATP group should cut 100 to 150 positions each year, between 1,000 and 1,100 jobs by 2024, in a scope of approximately 5,000 employees (marketing and sales functions, HR, purchasing, information system, finance, etc.). This workforce reduction is expected to generate a saving of €121 million per year. Management stated that no dismissal was planned. "The equivalent number of retirements is expected over this period in support functions," says the group's internal magazine. Adjustment of the workforce will therefore be mainly through non-replacement of departures and internal redeployments. Conventional termination of employment contract for agents preferring to leave the group will also be possible. Three previous job creation were recorded in the ERM Database, in 2017 (110 job creations); in December 2013 (2,000 job creations) and in November 2013 (1,000 job creations).


Sources

Citation

Eurofound (2018), RATP, Internal restructuring in France, factsheet number 95657, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/95657.