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Consumer electronic dealer Media Markt starts laying off its office workers

Wednesday, 24 October 2012
Consumer electronics chain, Media Markt is laying off staff at its headquarters in Stocksund, Sweden. The office operates 170 people and the employees were informed on Tuesday.

The notice, which applies only to the head office and not the stores, still give heat to the Swedish consumer electronic sector, which has seen competitors such as Expert pushed out of the market. This came after Onoff also went off signifying that competition in the Swedish consumer electronics market is extremely tough.

However, Media Markt is reported to be launching an e-commerce site and plans to launch three new stores in Gothenburg, Södertälje, and Linköping before the year-end. This means the electronics chain would have 28 stores in Sweden.
How Media Markt, whose biggest challenger now in the Swedish electronic market is El- Giganten is positioned financially remains obscured. In May, the Swedish business weekly, Veckans Affärer, (Business Week) published a review in which the newspaper claimed that the Germany owned company is covering up its losses in Sweden.

Instead of the relatively positive trend that the company has painted, the Swedish department stores have made a common loss of Skr1.2 billion and together have equity of minus Skr1.2 billion, the weekly claimed citing most recent available financial statements of all the department stores. MediaMarkt owned by Media Saturn in Germany, which in turn is part of the German listed companies Group Metro.

Workers unions have reaffirms that on Wednesday they received a hearing request from the company:
"The company says that it wants to negotiate an organizational change, more concrete than that, not said," says ombudsman Bengt Larsson of the worker Union Unionen.
by Team

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