Numerous employees of the insolvent department store chain Galeria Karstadt Kaufhof are threatened with dismissal. As has now become known, almost two thirds of all branches are to close. The severance payments to the affected employees are tight.
According to a report by the “Handelsblatt”, 81 of the 129 branches of the insolvent department store chain Galeria Karstadt Kaufhof are on the brink of collapse. This would leave only 48 locations. However, these numbers are not fixed yet.
The branch closures will also be accompanied by a large wave of layoffs. Affected employees will receive a severance payment of two months’ salary or a maximum of 7,500 euros.
The layoffs will probably not be limited to the closed locations. The remaining markets should also become more efficient. Division managers are instructed to cut costs by 40 percent. On the one hand, there will probably be layoffs here as well. On the other hand, the sales areas could also be reduced.
It will probably be some time before it is finally clear which branches will be closed. A final list is not expected until March. Galeria Karstadt Kaufhof had to file for bankruptcy again last fall after 2020.