Migros Jobs: Major Cuts and Division Sales

Migros Jobs: Major Cuts and Division Sales

Fri, Feb 2nd 2024

Migros announces sweeping changes, selling divisions like Hotelplan and Mibelle, and slashing 1,500 jobs, aiming to refocus on core retail, financial, and healthcare services.


Migros faces a pivotal transformation as the retail giant plans to divest from its travel arm Hotelplan, the cosmetics branch Mibelle, and other sectors like Melectronics and SportX. This strategic shift is set to result in the loss of up to 1,500 jobs, primarily affecting back-office roles, including specialized IT positions. Migros is striving to minimize layoffs by leveraging its 1,400 current vacancies.

Despite these cuts, the financial impact of these divestitures on Migros’ overall sales remains undisclosed. Hotelplan’s contribution was notable, with 1.7 billion in sales out of Migros’ nearly 32 billion turnover in 2023. Signa owe Migros over 100 Million CHF.

The sale of Hotelplan and Mibelle is anticipated to be challenging, given their strategic misalignment with Migros’ focus on retail, financial services, and healthcare. Both subsidiaries are regarded as having more significant potential for growth outside the Migros ecosystem.

The rise of e-commerce has pressured Migros’ specialty stores like Melectronics and SportX, prompting the search for new ownership. The future of other specialty stores, such as Bike World and Do it + Garden, is under review after a 7.7% sales drop.

Additionally, the dental unit Bestsmile will see 9 of its 36 locations shut down, cutting 40 jobs. Migros also anticipates around CHF 500 million in impairment losses due to depreciated assets, although this is not expected to push the group into a deficit.

To counterbalance these changes, Migros is investing over 8 billion Swiss francs in its core business, including Migros supermarkets, a new store concept for Denner, and online expansion, demonstrating a commitment to growth despite the current downsizing.


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