Karstadt to cut 4,000 jobs
German department store tackling poor trading
German retailer KarstadtQuelle, Europe’s biggest department store operator, is to cut 4,000 jobs over the next two years.
The move, which aims to slash €145m from the retailer’s annual costs, will see staff reductions of 10 to 15 at the chain’s 212 stores. A handful of the worst performing stores could also be closed.
Most of the cuts will be in administration roles, where €95m is to be saved, with €50m coming through loss of sales staff jobs.
The announcement of the cuts had been widely expected. The Karstadt chain has borne the brunt if the severe economic slowdown in the German economy, which has seen consumers cut back on spending as well as shift much of their loyalty to discounters.
The job losses are part of a review launched by chief executive Christoph Achenbach, who replaced Wolfgang Urban in May, Along with the department stores, the review will look at the Quelle mail order business, as well as the group’s other retail chains and leisure interests.
