Media-Saturn to cut 500 million euro and 3000 jobs

For the first time in twenty years, Media Markt and Saturn have generated losses instead of profits. The price for the disastrous figures is high: half a billion euro cuts and 3000 people laid off. The chain specified that there will be no job cuts in Belgium, labeled as an expanding market.

Three markets cause €44M loss

In the second quarter of 2011, Media-Saturn’s operational loss was 44 million euro, as opposed to a 41 million euro profit the year before. A disappointing result on the German market is the main cause of this year’s loss, as well as the expensive (and slow) expansion in China and the separation from the French activities. 

Focus on new web shop

In this light, the new strategic decisions for the electronics twins will be tremendously important. As we mentioned before, Media Markt and Saturn will start focussing on e-retailing, with the aim of becoming Europe’s main online electronics retailer by 2015 with a turnover of 5 billion euro. Owner holding Metro has confirmed that both Media Markt and Saturn will also focus on offering the sharpest (possible) prices. 

Apart from Media-Saturn, Metro announced only good results, stating its EBIT will rise 10% this year. Nevertheless, Metro is concerned as Media-Saturn realises almost 30% of its total turnover – and was the fastest grower in the whole holding.