Media Markt Saturn Plans Staff Reductions in Germany

Electronics retailer Media Markt Saturn intends to reduce its workforce in Germany, even after reporting growth in revenue for the first nine months of the fiscal year. The company states that the planned job cuts are unrelated to the proposed acquisition by Chinese e-commerce giant JD.com.

However, the Verdi trade union, representing service employees, disagrees, suggesting that ownership changes often lead to personnel savings. According to Verdi, Media Markt-Saturn plans to cut jobs "depending on market size," aiming to reduce management and coordination levels and redistribute tasks among fewer employees.

Verdi has also criticized the company's procedures. The union claims that employees targeted for layoffs have been summoned for discussions about termination agreements on short notice and without prior announcement. Verdi advises affected employees against signing such agreements hastily, as those who do not sign quickly may face financial disadvantages.

Ceconomy, the parent company of Media Markt and Saturn, has stated that the JD.com acquisition will not result in job losses. Nevertheless, the company regularly reviews its investment and cost-saving opportunities. Ceconomy also aims to enhance customer proximity by allocating more resources to consulting, sales, and service, which may involve structural changes and clearer responsibilities.

The offer from JD.com expires in November. If the European Commission has not approved the deal by then, it will lapse. The Commission has been investigating the transaction for over a year regarding potential state subsidies that could violate EU competition rules.