Lesquin (France) (AFP)

More than 500 net jobs will be cut via a voluntary departure plan (PDV) at Auchan Retail headquarters, as part of a "reorganization" project announced Tuesday the northern distributor, against the backdrop of its model losing steam centered on the hypermarket.

In order to be "more attentive to new market needs and expectations", Auchan Retail management believes that the company must "adapt" its organization and its working methods, which must lead to the "elimination net of 517 jobs, "she said in a statement.

This project was presented Tuesday morning to staff representative bodies during three extraordinary ESCs in the North, in Lesquin and Marcq-en-Baroeul.

"The new expectations of consumers require the business to evolve": "in order to gain operational efficiency and agility, Auchan Retail plans to reorganize its support functions on French territory," said the distributor in his press release. In this context, he adds, "a reorganization project is envisaged", which will see the current teams be "resized".

The PDV envisaged thus concerns "the employees of the functions + head office + and + products + of Auchan Retail, of the functions + head office + and + products + of Auchan Retail France and of the support services of the territorial commercial organization of French activities".

According to the distributor, 677 positions would be cut, including 652 currently occupied, while 135 positions would be created, a "net reduction of 517 jobs currently occupied".

The distressed distribution group had already launched the first part of its "recovery" plan in spring 2019, with the sale of 21 sites potentially involving between 700 and 800 employees. In July, management said they had found buyers for ten of the sites put up for sale.

These actions are aimed at a "return to financial equilibrium and a profound change by 2022", which will involve "reducing its operating costs", with the "long-term ambition" of achieving 1.1 billion euros in cost savings, adds Auchan.

© 2020 AFP