Ominous signs in the sky of the German economy: layoffs at supermarket chains

Tegut announced its cost-cutting plan at the end of November, as part of which it has already transferred 10 percent of its stores to new operators, while cutting 120 jobs. The chain operates more than 300 supermarkets and employs nearly 7,600 people in six federal states.

According to the German newspaper Chip, CEO Thomas Gutberle also left the company after the company’s transformation plans were announced. The parent company, the Swiss-based Migros Cooperative, has reached an agreement with the works council to smooth the transition, which will aim to mitigate the negative effects of the layoffs.

The layoffs at Tegut are planned to be implemented over two years, primarily at the headquarters in Fulda and the logistics center in Michelsrombach. The first employees have been offered the option to leave by mutual agreement, including Logistics and IT Manager Michael Egerer, who has accepted the offer.

The transformation includes the sale of some stores, which could help protect jobs. It is not yet known which locations will be sold and who the buyer might be.

Although unemployment is still low in Germany, more and more companies are announcing layoffs. High energy prices and economic challenges are not only hitting industry hard, but also the service sector. The deterioration of the situation of agricultural machinery manufacturers highlights that the agricultural sector is already suffering from the economic downturn.

The transformation and layoff plan of Tegut is another sign of the German economic crisis. The deterioration of the situation in the service sector shows that the challenges affect not only industry, but almost all economic sectors. The flexibility of companies and efforts to protect jobs will be key in the future.