Migros Zurich to Cut 120 Jobs at German Subsidiary Tegut
Swiss retail giant Migros is cutting 120 jobs at its German subsidiary Tegut, according to a report by the Lebensmittel Zeitung newspaper.
The cuts are part of a restructuring plan that will see Tegut close 16 stores and reduce its workforce by around 10%.
Migros Zurich acquired Tegut in 2014 and has since invested heavily in the business. However, the German grocery market is highly competitive and Tegut has been struggling to compete with larger rivals such as Aldi and Lidl.
The job cuts are a blow to the German economy and are likely to raise concerns about the future of Tegut. The company is one of the largest employers in the German state of Hesse and its closure would have a significant impact on the local economy.
Migros Zurich has said that it is committed to Tegut and that the job cuts are necessary to ensure the long-term success of the business. The company is hoping to improve Tegut's profitability by reducing costs and focusing on its core strengths.
The job cuts are likely to be a difficult time for the employees who are affected. However, Migros Zurich has said that it will provide support to those who are losing their jobs.
- Migros Zurich is cutting 120 jobs at its German subsidiary Tegut.
- The cuts are part of a restructuring plan that will see Tegut close 16 stores.
- The job cuts are a blow to the German economy and are likely to raise concerns about the future of Tegut.
- Migros Zurich has said that it is committed to Tegut and that the job cuts are necessary to ensure the long-term success of the business.
Here are some additional details about the job cuts:
- The job cuts will affect all areas of Tegut's business, including stores, distribution, and administration.
- The majority of the job cuts will be in Germany, but some jobs will also be lost in other countries where Tegut operates.
- Migros Zurich has said that it will provide support to employees who are losing their jobs, including severance pay and job placement assistance.
The job cuts are a reminder of the challenges facing the German grocery market. The market is highly competitive and retailers are under pressure to keep prices low. This has led to a number of job cuts in the sector in recent years.
It remains to be seen whether Migros Zurich's restructuring plan will be successful. However, the job cuts are a sign that the company is serious about improving Tegut's profitability.
