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Tchibo freezes the salaries of its employees

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Tchibo freezes the salaries of its employees

The consumer goods and retail company Tchibo is in a crisis – no salary increases are possible in 2023.

Like many retailers, Tchibo is going through a crisis. The group has now frozen the salaries of its employees, first reported the “world“, citing an internal letter to the employees.

According to the report, the workforce knows that 2022 was “financially the worst year in the almost 75-year history of the company”.

The company’s sales fell “significantly” last year. The reasons are high inflation, interrupted supply chains, the war in Ukraine and the corona pandemic.

The consumer goods and retail company Tchibo is currently in a crisis. The group has therefore frozen the salaries of its employees, the first reported „Welt“ (belongs to Axel Springer like Business Insider Germany) citing an internal letter to the employees. Salary increases are therefore not possible.

“Unfortunately, the company figures do not allow an adjustment of salaries this year,” wrote the new HR manager Julia Braß and CEO Werner Weber according to the daily newspaper. The workforce knows that 2022 was “financially the worst year in the company’s almost 75-year history,” according to the report.

In the course of the crisis, the question arises as to whether Tchibo also has to expect branch closures. However, there are no reports on this yet. So far, the trend has been the opposite: 15 shops have been opened in the past few months. And further new branches are also planned for 2023.

Tchibo in crisis: problems with stock levels, frustrated employees

In 2021, Tchibo was still in good financial shape and posted sales of EUR 3.26 billion. With a preliminary result of 176 million euros, the profit was almost twice as high as in the lockdown previous year. But last summer, the Tchibo parent company Maxingvest predicted that sales in 2022 would be below the previous year and earnings would be “significantly lower”.

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The reasons are high inflation, interrupted supply chains, the war in Ukraine and the corona pandemic. In addition, according to “Welt”, there should be problems with inventories. After Tchibo filled its warehouses with goods from Asia and Eastern Europe in 2021, many products are now stuck.

According to the report, many employees also vented their anger online, complaining about a bad working atmosphere, declining motivation, demands for maximum performance with a de facto falling salary.

But Tchibo is not the only retailer going through a difficult phase. The fashion groups Gerry Weber and Peek & Cloppenburg as well as the shoe retailer Görtz recently filed for bankruptcy. In addition, Galeria-Kaufhof announced branch closures.

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