Marionnaud Announces Job Cuts

2009-06-16 | 07:29

French perfumery chain to lay off 700.

The recession is taking its toll on the French fragrance industry. Marionnaud Group plans to lay off approximately 700 employees in France,—about 17% of its workforce in the country.

The cuts include 659 positions in 370 of its 562 stores and 45 jobs in its head office — but does not include any perfumery closures — is meant to ensure the A.F. Watson Group-owned perfumery chain returns to a consistent level of profitability.

During the past three years, Marionnaud has lost about 25 million euros, or $34.4 million at current exchange, annually, according to the firm, which added in 2008 there was a slight improvement.

“The very difficult current economic context, added to the severe shrinkage of the market and the resulting intensification of competition, has degraded our position,” stated William Koeberle, chief executive officer of Marionnaud Group.