Casino, the French retail giant, announced approximately 2,200 layoffs as part of a restructuring following its acquisition by Daniel Kretinsky. While the total job cuts may reach 3,000, some layoffs were avoided through various measures. The company aims to focus on smaller store formats to enhance profitability and has divested from unprofitable hypermarkets. Despite a reported decrease in revenue, Casino opened 268 new stores in 2024 and is streamlining its operations to adapt to changing consumer behaviors.
Major Layoffs Announced at Casino
Casino, the well-known French retailer behind popular brands like Monoprix and Franprix, has delivered unfortunate news to its employees. As part of a significant transformation following its acquisition, the company revealed on Friday that its current social plans would result in approximately 2,200 layoffs. Philippe Palazzi, the CEO of the group, confirmed that “nearly 90% of the layoffs” have already been “notified to date,” clarifying an earlier estimate that ranged between 2,200 and 2,300 job cuts.
Company Restructuring and Future Plans
While the total planned job cuts are around 3,000, management stated that 1,000 layoffs were avoided due to measures such as internal redeployment, natural employee departures, and a voluntary departure plan. Casino is not alone in this trend; its competitor Auchan has also announced a substantial social plan that threatens 2,400 jobs across France.
Recently acquired by Czech billionaire Daniel Kretinsky, Casino reported a reduction in its net loss for 2024 to 295 million euros, with a 5.4% drop in turnover down to 8.5 billion euros. This is a significant improvement compared to the staggering loss of 5.7 billion euros encountered in 2023. According to CEO Philippe Palazzi, the company has undergone a “deep transformation” despite still facing challenges from previous operations. He emphasized that the restructuring plan has been executed effectively and on schedule since his arrival in March.
The new leadership aims to reposition Casino as a local champion, focusing on smaller store formats like Franprix, Spar, Vival, and Naturalia, which are often found in urban centers and offer enhanced services. In a strategic move, Casino has divested from its hypermarkets, described by Palazzi as “the major loss centers,” allowing the company to look forward with optimism.
In 2024, Casino opened 268 new stores, emphasizing the importance of location and the right franchisee partnerships to achieve a “return to profitability” by 2026. Palazzi noted the evolving consumer behavior, stating that “young generations no longer want to travel to do their shopping,” while the aging population in rural areas faces mobility challenges.
At the end of 2022, Casino employed around 200,000 people globally but faced significant debt challenges that were restructured in mid-2024, aided by new capital from billionaires Daniel Kretinsky and Marc Ladreit de Lacharrière in exchange for control of the company. Over the past year, the retailer has sold 366 large-format stores to competitors such as Intermarché, Auchan, and Carrefour, generating 1.8 billion euros in revenue.
Casino is also focusing on streamlining its store network, having closed 768 unprofitable locations, including a significant percentage of franchisees and tenant-managers. Additionally, targeted price reductions have been implemented across Monoprix, Franprix, and Casino, with discounts offered on over 500 essential items.
Furthermore, Casino owns the online shopping platform Cdiscount, which reported a revenue decline of 16.3% year-on-year in 2024, totaling just over one billion euros. The company attributes this drop to its strategic shift towards prioritizing sales by third-party vendors on its platform, rather than focusing on direct sales through Cdiscount.