A major cut to come in the workforce of two major DIY brands. Leroy Merlin and Castorama announced, this Friday, November 29, 2024, workforce reductions within their respective headquarters.
“The collective contractual termination only applies to voluntary employees of the brand's headquarters. No store employees are affected,” said Castorama in a press release on Friday November 29, 2024. The DIY brand plans a workforce reduction of up to 100 employees at its headquarters, near Lille, or one in seven, while its competitor Leroy Merlin also recently reduced its workforce in its central functions.
“A constantly evolving competitive context”
This system is part of a Castorama strategic plan launched in March, which aims to restore its profitability and help it remain competitive “in a constantly evolving competitive context”, added the company. After experiencing a DIY boom during the Covid-19 pandemic, the sector is becoming disillusioned in France.
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In the third quarter, Castorama sales fell 4.9% year-on-year, according to the latest Kingfisher results published on Monday. The British group, also owner of Brico Dépôt (whose sales declined by 3.3% over the same period), blamed these poor figures on “weak consumer morale and unfavorable weather conditions”.
130 departures at Leroy Merlin
Castorama's great rival, Leroy Merlin has also carried out a collective contractual termination in recent months at its headquarters in Lezennes, in the Lille suburbs, leading to the departure of 130 employees, the brand indicated to l'AFP Friday November 29, 2024, confirming information from Les Echos.
Read also: In France, the DIY market is slowing down but not stalling
Leroy Merlin's turnover “recorded a decline in line with the market”, added a spokesperson, without providing further details. “The main cause is the drop in real estate transactions and births,” which diminishes the work carried out by the French, she explained.
