Migros Zurich reorganizes its German subsidiary Tegut
Published: Thursday, Nov 14th 2024, 11:50
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Migros Zurich is cutting costs at its loss-making German subsidiary Tegut. It is selling every tenth branch, cutting 120 full-time jobs and making new appointments to the management team.
The reason for this is the inadequate sales and earnings performance, Migros Zurich announced on Thursday. The aim now is to secure the future of the company. It is generally known that Tegut has been making losses for Migros Zurich for years.
As a consequence, Migros Zurich is now cutting 120 jobs at its headquarters in Fulda. This comes after costs there have risen significantly in recent years, as Migros writes. According to Migros Zurich, the cutbacks should be as socially responsible as possible.
In addition, Migros is now looking for a buyer for every tenth store. There will also be a change in management. The previous Managing Director Thomas Gutberlet is leaving the company with immediate effect. The new management team now consists of Sven Kispalko, Head of Restructuring, Karl-Christian Bay, Head of Finance, and Robert Schweininger, Chief Operating Officer.
"We are convinced that these drastic measures are necessary to secure the future of Tegut and achieve robust results in the future," Patrik Pörtig, Managing Director of the Migros Cooperative Zurich, is quoted as saying in the press release.
Tegut has been suffering from a lack of profitability for some time. Both the current market situation and a possible expansion outside the Tegut core area are currently proving to be challenging, according to the information provided.
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