(Montreal) The retailer Rona announced Thursday evening a restructuring that will lead to the loss of 500 jobs in its chains of stores specializing in home renovation.
The company said it wants to further simplify its operations in the context of the “current economic downturn”, which forces it to “adapt to reflect new market realities”.
According to the company, affected employees will receive support during this transition. No details were shared about the jobs being cut, but Rona said the company’s headquarters would remain in Boucherville.
Rona calculates that this simplification of its organizational structure will strengthen its market position and make it more efficient.
Acquired in 2016 by the American Lowe’s for the sum of 2.3 billion US, Rona changed hands once again last November, when the New York private equity firm Sycamore Partners disbursed 400 million US, in more than deferred consideration calculated on future performance, to become the owner.
Most recently, in March, Rona celebrated being an independent business again, announcing that all of its Lowe’s stores would be converted “over time” to Rona stores. She then spoke of a “bright future” for her 26,000 employees, but in her press release on Thursday, she said she was now counting on a team of 22,000 employees.
In this regard, a Rona spokeswoman clarified in an e-mailed statement that “due to the seasonality of our business sector, the number of our employees varies from one period of the year to the to another, and from year to year, as we adjust the number of seasonal employees required to meet market needs”.
“Due to the current economic downturn, we hired few seasonal employees this year, compared to previous years. This explains why our figures seem to have decreased more than the number of job losses announced as part of our restructuring, ”added this spokesperson, Valérie Gonzalo.
Rona has 425 corporate or affiliated stores across the country, which are operated under the Rona, Réno-Dépôt, Lowe’s and Dick’s Lumber banners.