Marionnaud re-evaluates job cuts

French beauty retailer Marionnaud has announced it is to reduce the number of planned job losses from 704 to 582, or 14% of the workforce.

The move comes after a detailed examination of its retail outlets as well as taking into account jobs saved by planned future shop openings. However, Marionnaud's works committee has continued to take an unfavourable view of the social plan and claims that a comparable reduction in jobs could be achieved through natural wastage over a two-year period. The group has not been profitable since its acquisition in 2005 by the Chinese group A S Watson and now says it has no other choice but to adapt both costs and organisation to the market. The extent of the losses is estimated at some €25m annually. Sales in France dropped 5.8% last year to €656m.