Swiss retail chain Migros to shed jobs and sell-off subsidiaries
Swiss retail giant Migros is looking for new owners for its subsidiaries Hotelplan, cosmetics and hygiene brand Mibelle, Melectronics and SportX. The new strategy involves major job cuts but also investments in core business areas.
The current focus will lead to a reduction of up to 1,500 full-time positions at the Migros Group, according to a statement on Friday. For example, in corporate IT there are specialists for individual areas who would lose their job after a sale.
However, the goal is to avoid layoffs as much as possible. It was emphasised that there are currently around 1,400 open positions in the Migros Group alone.
Migros does not say how large the sales share of the companies put in the shop window is. All that is known is the figure for the travel subsidiary Hotelplan, which contributed CHF1.7 billion to the group’s sales of almost CHF32 billion in 2023.
Migros does not expect a buyer to be found quickly, especially for Hotelplan and Mibelle. The goal is to carry out the process carefully. They are therefore likely to take a longer time.
The sell-off plans have different reasons. Hotelplan and Mibelle no longer fit the group strategy, which envisages a focus on retail, financial services and the topic of health. And they would have better development opportunities outside the Migros universe, according to the communiqué.
Hotelplan, for example, is number one on the Swiss market, but is comparatively small globally. But size is crucial in the travel business. In addition, there are only a few synergies with the core business of the Migros Group.
And Migros founder Gottlieb Duttweiler’s mission to give the general public a vacation is now being well fulfilled by many providers.
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