DUESSELDORF, Germany (Reuters) - MediaMarktSaturn, Europe's biggest consumer electronics retailer and owned by Ceconomy, plans to announce hundreds of job cuts following a string of profit warnings and management upheaval last year, sources said.
The supervisory board is set to decide on a radical restructuring at the end of the month, with hundreds of jobs set to go, particularly at the head office in Ingolstadt, Germany, several people familiar with the process told Reuters.
The sources said the company - under the management of new boss Ferran Reverter - is also reviewing its investments and could even close some down.
Ceconomy - which runs more than 1,000 Media Markt and Saturn stores across Europe - has been battling fierce competition from e-commerce players such as Amazon.com (NASDAQ:AMZN), and is trying to better integrate its stores and online range.
Ceconomy appointed a new management team at the end of January, after its chief executive officer quit in October and its chief financial officer left at the end of December.
The company reported tentative signs of recovery in February when it maintained its profit guidance for the fiscal year after posting better-than-expected first-quarter sales, buoyed by Black Friday discount days and upbeat online sales.