The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale In Non-Specialised Stores 47.19 - Other retail sale in non-specialised stores
2,000 jobs Number of planned job losses
Announcement Date
18 July 2012
Employment effect (start)
18 July 2012
Foreseen end date
31 December 2014
Description
The retail chain Karstadt intends to cut 2,000 positions by the end of 2014. The job cuts will be realised by natural attrition.
According to the management, the restructuring is necessary to remain competitive and ensure long-term success. The plans are criticized by the United Services Union (ver.di), which points out the need for modernising work organisation and sales products.
The plans were announced when Karstadt was about to resume normal employee remuneration in accord with the sector's collective agreement, after staff had received reduced entitlements for the past three years to allow for the turnaround of the company.
Karstadt employs about 24,400 staff. The chain was taken over by investor Nicolas Berggruen in 2010 after being threatened with insolvency.
Sources
17 July 2012: Financial Times Deutschland
Citation
Eurofound (2012), Karstadt, Internal restructuring in Germany, factsheet number 73908, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/73908.
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