How Auchan's management justifies the elimination of 1,475 jobs in France

INTERVIEW

The announcement fell on Wednesday morning: the management of the distributor Auchan Retail France indicated that 1,475 jobs were going to be eliminated, the main measure of the "second stage" of its "transformation plan".

This news caused a "real shock" among the unions, after the more than 500 jobs already cut in early 2020 and the confinement, during which the employees of the large distribution were praised for their dedication.

"This plan was initiated long before the Covid-19", justifies at the microphone of Europe 1 Jean-Denis Deweine, CEO of Auchan France.

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"The measures contained in this plan have only been slowed down", continues the leader.

"This plan is in no way linked to recent events. At the beginning of January, we announced the first stage of this transformation plan. Circumstances have decided otherwise and we have therefore postponed this second stage until now. "

"No positive effect" of confinement

But could Auchan have delayed or even canceled these job cuts in view of the surplus activity recorded during confinement?

"The effects of Covid-19 have not been as favorable as we think in the hypermarket model", nuance Jean-Denis Deweine.

"75% of our turnover at Auchan France is still achieved by the hypermarket model. Contrary to what some may think, the Covid-19 has not had a positive effect for Auchan."

According to the manager, the good results recently recorded by the group are before the fruit of the plan initiated before the crisis: "These results began to recover from the second half of 2019."

Jobs in the pedestrian drive

To support his analysis, Jean-Denis Deweine evokes a model of hypermarkets in full transformation, which would justify these massive layoffs.

"The content of certain professions is being struck by new technologies," he underlines.

"The hypermarket distributing products that are lined up on endless gondolas is certainly behind us. It must truly become a center of life in which we produce, for example, fresh pizzas or ready-made meals."

In order to lead this transformation, Auchan is therefore lowering its scope in after-sales services, for example, to create jobs in the field of pedestrian drives.

"The goal of this plan is to adapt to consumers", assures Jean-Denis Deweine.

"We want to win over new customers through new business models that combine digital and physical in the heart of cities."