Dutch retailer Schuitema to cut a fifth of jobs

AMSTERDAM: Dutch retailer Schuitema said on Monday it planned to cut about 140 of 640 jobs by the end of 2009 in a reorganisation to reduce costs partly due to difficult market conditions.

Dutch supermarket group Ahold agreed to sell its 73 percent in Schuitema to British private equity firm CVC Capital Partners in April. Ahold gained 58 Schuitema stores to add to its Albert Heijn chain as part of the deal, and Schuitema said it had also sold 10 other shops to third parties.

In total this had led to a reduction in turnover of about 15 percent, Schuitema said. "Not only does the changed shop portfolio call for an adaptation of the organisation, but also market developments play a role," said Schuitema's chief executive Tonn van de Laar in a statement. "In the current market where margins are constantly under pressure, it is necessary to adapt to the new situation quickly."