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Spanish supermarket Dia to slash jobs

AFP  |  Madrid 

Financially troubled Spanish group said Friday it wanted to cut up to 2,100 jobs as it reported a massive loss.

Dia, the target of a public buyout offer by the Russian oligarch who is already its top shareholder, reported a net loss of 352.5 million euros (USD 399.3 million) for 2018.

The discount chain, which has had to reduce prices in the face from competitors and Mercadona, saw net sales fall nearly 11 percent to 7.3 billion euros.

The results were much worse than the expected 4-million-euro loss expected by analysts surveyed by data provider Dia's shares slumped 2.2 percent in morning trading in while the overall market was off 0.5 percent overall.

said the job cuts would be negotiated with trade unions. Russian billionaire Mikhail Fridman's LetterOne investment fund, which became Dia's top shareholder in 2017 with a 29-percent stake, launched a public share offer to take over the company on Tuesday given its "serious financial difficulties".

The company's shares have lost nearly 90 percent of their value since the beginning of 2018 and have lost their place on the exchange's main

Management problems have also plagued the firm. In December, it named its third in less than six months.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 15:45 IST
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