Migros Supermarket AG, the supermarket business unit of Migros, will implement its new organisational structure on 1 July 2024.
The move – aimed at implementing simplified processes, lean structures, and clear roles – will lead to the elimination of 150 full-time positions.
The job cuts will affect employees at the Limmatplatz location in Zurich and the company also indicated the possibility of layoffs.
“We want to be simpler and faster, that’s what we’ve geared the new organisation towards,” stated Peter Diethelm, CEO of Migros Supermarket AG.
“I am aware that dismissal is stressful and painful for the employees affected. It affects many valued and long-standing colleagues. It is important to me that we provide all affected employees with comprehensive and competent support in their professional reorientation,” Diethelm added.
Last year, the administration of the Federation of Migros Cooperatives (Migros-Genossenschafts-Bundes – MGB) decided to operate the supermarket business of Migros as an independent, centrally controlled company.
Support Plan
Migros has devised a national social plan with internal and external social partners to cushion the effects of dismissals as far as possible.
Employees affected by job cuts at Migros Supermarket AG will receive individual benefits that depend, among other things, on seniority and age.
In addition, it will offer support from HR and specialised external partners in searching for new positions within and outside of Migros.
Management Change At Fresh Food Division
The company has appointed Miriam Richter as head of the newly created fresh food division with the merger of the food and fresh divisions.
Richter served as the head of food and procurement management since March of this year. Elsewhere, Sandra Stöckli the head of the fresh division has decided to hand over management at the end of June and leave the company at the end of August.
Other Changes
Migros will gradually phase out Nutri-Score nutritional labelling from own-brand products as the high costs related to its implementation have outweighed the benefits since its introduction three years ago.
The company will provide comprehensive information about the nutritional values of products on the packaging of own-brand products.
The retail group will also reduce its electronics range to a basic offering in around 50 larger Migros supermarket outlets.
It will now offer personal and dental care products, kitchen appliances and coffee machines, cleaning equipment as well as watches, batteries, printer cartridges, and data carriers.
Elsewhere, Migros decided to discontinue the FoodNow food delivery service at the end of May as the business could not meet its goals despite expanding to around 600 restaurant partners and witnessing considerable growth in orders and delivery area since its launch in 2020.