French retailer Carrefour SA (CA.FR) on Tuesday announced a sweeping reorganization including job reductions and potential store closures aimed at shoring up its faltering performance.
The company plans to offer 2,400 employees voluntary redundancies and to divest 273 ex-Dia stores. It has also made agreements for new partnerships that it expects will strengthen its e-commerce, last-mile delivery and Chinese operations.
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Carrefour last week cut its earnings outlook as it continues to struggle with sluggish domestic performance, challenges outside France and tough digital competition.
Carrefour will offer about 2,400 employees a voluntary-redundancy package at its headquarters in the Ile-de-France region. As part of this, Carrefour will close its Boulogne headquarters and scrap plans to build new headquarters in Essone. The company currently employs 10,500 people at its head office.
If it doesn't find a buyer for the 273 former Dia stores it plans to divest, they will be closed.
Carrefour also announced a strategic cooperation agreement with Tencent Holdings Ltd (0700.HK) in China, as well as a potential investment by both Tencent and Yonghui Superstores Co. Ltd (601933.SH).
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(END) Dow Jones Newswires
January 23, 2018 03:15 ET (08:15 GMT)