French FNAC aims to cut costs

<p>French chain FNAC will announce next week a redeployment of staff in its Paris stores, as it seeks to cut costs by &euro;35m (&pound;31m). </p><p>Last week, the group announced that &quot;400 jobs in France, or 3.4% of the total&quot; could be affected<br />by the cost saving, but has denied that this will result in redundancies.</p><p>FNAC said the number represented less than 25% of natural staff turnover, which amounted to 14% last year. The chain said it would aim to avoid any redundancies and would offer alternative posts over the next 18 months. About 100 are already open, it said.</p><p>The announcement was made while meetings with store works councils were underway and amid a flurry of French newspaper articles. The official denied a report last week in the French daily <em>Le Figaro </em>that three stores in the Paris area and a fourth in the provinces were under threat.</p><p>Management will meet with staff next week to discuss the new arrangements, an official told <em>The Bookseller.</em></p><p>The unions say cutting 400 jobs is&nbsp;unjustified in view of the company&#39;s stable financial position and the dividends it pays to parent company Pinault-Printemps-Redoute. PPR is reported to be asking &euro;300m (&pound;266.1m) this year, up from the &euro;53m (&pound;47m) it received in 2008.</p>