MediaMarkt and Saturn in crisis: 14 branches close

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Ceconomy, the majority owner of MediaMarkt and Saturn, wants to reorganize its business and is using the red pencil: Several thousand jobs are cut. The realignment also includes branch closings. We explain who is particularly affected.

Media Markt

MediaMarkt and Saturn: 3,500 jobs canceled

Ceconomy, the parent company of MediaMarkt and Saturn, wants to reorganize. Instead of being decentralized as before, the company now wants to manage business in Europe centrally. The supervisory board has now approved the plan, reports Der Spiegel among others. With far-reaching implications for the workforce: the MediaMarktSaturn Group wants to cut 3,500 jobs. And that “mainly in other European countries”, it says in the report.

14 branches are also to fall victim to the restructuring. As the news portal reports, it should be about branches with sales difficulties. However, it cannot be ruled out that further closings will follow.

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Downsizing over almost three years

The company intends to cut jobs within the next two to three years and thus save over 100 million euros annually, writes Around 45,000 employees currently work in administration and in the 1,000 or so MediaMarkt and Saturn branches.

The realignment of the group is primarily about “uniform management structures and standardized processes and procedures” writes Der Spiegel. Most recently, resentment has spread particularly among the management and the supervisory board, also because visions for the future of the branches are apparently missing.

Now processes and structures in the branches and in the national organizations are to be standardized. This should relieve the individual MediaMarkt and Saturn stores, increase efficiency and save costs.

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