Leading Swiss retailer axes 290 jobs

Leading Swiss retailer axes 290 jobs
Migros, the biggest retailer in Switzerland, has announced it will cut 290 full-time jobs over the next three years following a drop in profit.

The federation of cooperatives said in a statement it was making itself fit for the future and hoped to save 120 million francs through a restructuring of operations.

The majority of jobs will be lost through natural wastage and early retirement and reduced working hours but around 70 redundancies are expected, the retail giant said. 

The Migros cooperative currently employs 2,700 workers.

The business magazine Handelszeitung said most of the job cuts would hit marketing and IT departments.

It said Migros would be looking to reduce overcapacity and increase efficiency.

Profits at Migros were down 40 percent in 2017 despite the company posting record turnover.

The number one retailer in Switzerland ahead of Coop said the restructuring was less about cutting costs than about making funds available for future projects.

It also comes in response to the trend towards internet shopping and increased competition from international online retail businesses.

Migros was recently named most sustainable retailer in the world in a comparison of more than 150 companies, it reported earlier this month.