At the special works council, Carrefour has decided to cut 1672 jobs and they will close 21 stores. Moreover the wage of employees has to decrease. As a result of these decisions, Carrefour is hoping to become again profitable.
The 21 stores that will be closed exists of 14 hypermarkets and 7 supermarkets. Seven other stores of Carrefour will be opened in franchise by an entrepreneur. Furthermore negotiations will be hold between Carrefour and Mestdagh. The group Mestdagh is the head of the Belgium Champion stores. This group is interested to take over 14 stores. However it’s not sure that there will be an agreement.
There is no doubt that 1672 jobs will be cancelled. If the negotiations with Mestdagh or the franchise experiment fail, there is a possibility that more jobs will be deleted. Therefore the labour union said that there is a change that the abolition of the employment will increase to 4000.
The board of Carrefour said that 27 hypermarkets and 25 supermarkets were already making loss for many years. The opinion of the French leading figure, Gerard Lavinay, is that if Carrefour will close all those stores, 4700 people will lose their job. 3000 jobs can be saved if Carrefour will limit that huge number. Besides I think when 4700 people will become unemployed there will be a big fuss. Carrefour is making the right decision to constrain it. If the negotiations will be carry through, the French group will be at the right track to become again profitable.
As a result of this big problem, the causes are easy to find. It’s mostly because there were not enough investments in the GB-stores. Also the stores aren’t innovative.
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If 27 hypermarkets and 25 supermarkets are making loss for many years, I think it's a good decision to save. It's pity for the people who are losing their job, but Carrefour had to take measures. The consequences could be worser if they fired 4700 people.
BeantwoordenVerwijderenThere are a lot of people who lose their job, but Carrefour is making the right measures, I think. If there will be an agreement between Carrefour and Mestdagh 14 stores will be saved. I also think that inovations in the GB-stores are important. Hopefully Carrefour can become again profitable.
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