Migros Zurich plans to restructure its German subsidiary tegut, putting approximately 120 full-time jobs at risk.
The decision follows the inability of the banner to leverage existing market potential and generate sufficient sales and profit, the company noted.
Restructuring Programme
Migros Zurich aims to secure the future of the tegut with this restructuring programme.
The programme will involve job cuts in tegut's central services, which has contributed to increased costs in recent years.
Underperforming tegut stores will be handed over to new operators and approximately 10% of the outlets will be affected.
The company's management will also change with managing director Thomas Gutberlet stepping down immediately.
Patrik Pörtig, managing director of Migros Zurich Cooperative, stated, "I have great respect for Thomas Gutberlet's decision and thank him for his many years of work."
New Management
With Gutberlet's departure, the responsibility for running the company will be transferred to the new management team, the company noted.
The new team comprises Sven Kispalko, chief restructuring officer (CRO) and spokesperson of the management board; Karl-Christian Bay, chief financial officer (CFO); and Robert Schweininger, chief operating officer (COO).
Pörtig added, "We are convinced that these drastic measures are necessary to secure the future of tegut... and to achieve robust results in the future.
"It is very regrettable that employees of tegut... have to leave the company. It is very important to us to implement the reduction in the most socially acceptable way possible."
In April of this year, the German retailer restructured and expanded its management board to include four new members, with Robert Schweininger, previously head of purchasing, taking over as the managing director of the newly created 'sales and purchasing' department.
