PARIS (Reuters) – Carrefour plans to cut 1,229 jobs as it downsizes its large hypermarket stores in France under a plan to boost sales and profits at Europe’s largest retailer, the Force Ouvriere union told Reuters.
The plan, which is being discussed with the FO, CFDT and CFE-CGC unions, entails departures via a conventional collective bargaining agreement, said FO union representative Michel Enguelz.
Carrefour had earlier confirmed to Reuters that it was in talks over a conventional collective bargaining agreement, but the company did not specify any figures over possible job losses.
The likely cuts and downsizing will result from the removal of jewelry corners in hypermarkets, cuts among managers and automation of petrol stations.
Last month Carrefour, which has made reviving sales at its French hypermarket stores where it employs 60,000 people a priority, raised its savings goal to 2.8 billion euros (£2.4 billion) by 2020 from 2 billion previously.
In January 2018, Carrefour launched a five-year plan a year ago to cut costs, boost E-commerce investment and seek a partnership in China with tech giant Tencent.
The plan notably includes expanding into convenience stores to reduce exposure to large hypermarket stores and having a greater focus on organic products and private labels.
Carrefour achieved savings of 1.05 billion euros in 2018, the first year of the plan.
(Reporting by Pascale Denis and Dominique Vidalon; Editing by Sudip Kar-Gupta)