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.
On 2 August, the French telecommunications company SFR, which is part of the Altice Group, has announced a substantial reorganisation, entailing the loss of 5,000 jobs (approximately 1/3rd of its workforce) by 2019. The management wants to avoid forced dismissals and will propose a voluntary departure plan which is yet to be discussed with representative unions. According to unions, the management added it will provide the same level of compensation as it did during previous voluntary departure plans. For instance in 2012, 2 to 3 months salary per year of seniority was provided.
SFR was bought in 2014 by the telecommunication and media group Altice. On 27 July 2016, the company announced its plans to make 5,000 employees redundant, however the Minister of Labour, Myriam El-Khomri, organised a meeting with Altice CEO, Patrick Drahi, as SFR committed to maintain employment levels in SFR until the 30 June 2017 as a condition of its purchase. Furthermore, according the union CGT and as reported by Le Monde on the 27 July, about 1,200 employees have resigned during the 18 last months.
According Les Echos, SFR is facing sharp competition. The company lost about one million customers in 2015 and recorded losses for the first quarter 2016. The information and consultation process for the reorganisation of the network of retail stores (which is expected to see 1,000 job cuts our of a total of 3,900 employees working in SFR shops nationalwide) is expected to end by 25 August, and the first departures could start in November 2016. The management estimates that this part of workforce is not included in the commitment it took to maintain the employment level until June 2017. A second wave will lead to end the information and consultation process by April 2017 to schedule the first departures by 1 July 2017. The aim of the management is to reach a global agreement with unions on the restructuring process.
SFR had already launched a voluntary departure plan in 2008 (see SFR-2008), announced redundancies (120 jobs) as part of this plan in 2012 (see SFR-2012a) and other job cuts (1,123) in November 2012 (see SRF-2012b).
Update 14-11-2016: On 14 November, the management has given its outline for its reorganisation, explaining which divisions will see staff reductions. The BtoB division (3,140 employees) will lose between 628 and 785 positions. The network activity division (2,210) employees) will lose 10-15% of its workforce. Customer relations (1,300 employees) will lose 455 to 520 postions (35-40% for its workforce). Support roles (730 employees) will lose by 30-35% of its positions, as will the administration (410 employees). IT services and HR management will each be shrunk by 25-30%.
Eurofound (2016), SFR, Internal restructuring in France, factsheet number 88283, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/88283.
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