Cycleurope France: Redundancy Plan for 140 Employees

ROMILLY-SUR-SEINE, France – Cycleurope France is planning to cut 140 jobs at its facility in Romilly-Sur-Seine. This would mean that a big part of the Romilly workforce will be made redundant. Currently about 347 people are working at Cycleurope in Romilly.
According to Tony Grimaldi, CEO of Cycleurope AB: “The social plan was launched at a meeting with the Union and the Workers Committee on January 22. This plan presented a reduction of 140 persons in the Romilly factory. This will secure the financial situation in the company.”
According to a publication in the French magazine ‘L’usine Nouvelle’, the Union CGT insisted that the other Cycleurope plant in Machecoul with its 300 employees is also concerned.
The redundancy plan comes after the November 2006 dismissal of Vincent Mathieu, GM of Cycleurope in France and a move from the Stockholm holding company that created turmoil under Cycleurope’s suppliers. Component makers were told to mail their invoices no longer to the holding company in Sweden, but to Cycleurope in France. The component makers explained this move as an indication of rising financial problems at the French part of Cycleurope, also because credit insurances for the company were dropped. The financial problems are said to be caused by a drop in orders from Supermarkets and Decathlon.