By Olivier Sorgho
(Reuters) -Supermarket group Casino said on Wednesday it would cut up to 3,267 jobs to tackle its financial problems, while refocusing its business with the aim of becoming France’s leading convenience stores retailer.
Casino last month announced a new leadership team formed around Czech billionaire Daniel Kretinsky, with former Metro and Lactalis executive Philippe Palazzi becoming CEO, ending the 30-year reign of businessman Jean-Charles Naouri.
The new leadership is in charge of a slimmed-down group as Casino has already reached agreements with French rivals on the sale of 288 supermarkets and hypermarkets in France, leaving it with upmarket brand Monoprix and city-centre stores Franprix.
Shares in Casino, which have lost about 96% of their value this year, were up 3% at 0828 GMT. The group, which in February posted a net loss of 5.7 billion euros for 2023, is due to report its first quarter sales after markets close.
Casino, which is attempting to sell more of its hypermarkets and supermarkets, said that if no buyers are found, it may close some and certain logistics platforms.
“The group will offer a voluntary redundancy scheme for employees who are affected by the employment protection plan and who have a career plan, in order to limit the number of forced redundancies as much as possible,” Casino said in a statement.
“The final impact in terms of job losses will depend on the group’s ability to find buyers for the hypermarkets, supermarkets and logistics platforms that are scheduled for total or partial closure,” it added.
French unions said they were unable to prevent the losses.
“It’s a social disaster, and we are powerless in front of the new organisation that the new CEO wants to put in place,” Jean Pastor, CGT delegate for the Casino group, told BFM TV.
Casino also announced a 1.2 billion euro ($1.3 billion) investment to modernise its stores by 2028, saying it will strengthen purchasing partnerships with French retailer Intermarché and extend them to Auchan.
($1 = 0.9349 euros)
(Reporting by Olivier Sorgho; Editing by Sudip Kar-Gupta, Dominique Vidalon and Alexander Smith)
