Restructuring events
European Restructuring Monitor (ERM)
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.
In March 2004, KarstadtQuelle, general store, announced its intention to cut 7,000 jobs. These cuts, which represent 6.5% of its workforce, would take place in two rounds. A first 3,000 redundancies negotiated with the unions before Easter and a second round of 4,000 before the end of 2004. On September 2004, Karstadt announced its plan to sell off the clothing chains SinnLeffers and Wehmeyer, sports goods shops Runners Point and Golf House as well as its stake in a coffee shop joint venture with Starbucks. The retailer gave no specific numbers for job losses, but CEO Achenbach estimated that about 4,200 workers are employed at the department stores it has put on the block. In addition, the 300 or so specialty shops employ up to 5,800 people. A supervisory board source said thousands of jobs would go. Media reports have said the company will shed up to 8,500 jobs, or about 11% of its workforce and 4,500 more than planned earlier. In October 2004, the management of KarstadtQuelle has reached an agreement with employee representatives regarding a restructuring plan. According to company head Christoph Achenbach, staffing costs are to be reduced by € 760 million by 2007. While 5,500 jobs are to be cut in the coming three years (and no rise in pay), including 4,000 in department stores and 1,500 in the mail order division, no direct dismissals are planned. In December 2004, KarstadtQuelle AG said it has agreed on a package of measures to cut 4,200 jobs until 2007. KarstadtQuelle said the agreement, struck with labour representatives, will offer employees voluntary redundancies and training at a specially created job-transfer company. If the voluntary job cuts don't lead to the desired reductions, the company may begin forcing layoffs from 30 September 2005. Management and labour representatives have also agreed on steps to spin off 77 small retail outlets into a new company called Karstadt Kompakt. The company will review its progress on job cuts mid-2006.
Eurofound (2004), KarstadtQuelle, Internal restructuring in Germany, factsheet number 59257, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/59257.
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