Orange deals with the remodeling of its store network

Orange opens the sensitive file of the reorganization of its network. The group presents this Thursday to the representatives of the workers its project to review the articulation of its 550 stores in France. During this works council (CSE), the management will announce the change of a third of its points of sale to a dedicated subsidiary, called Générale de Télephone (GdT). This company already manages 200 Orange stores in France, but with less favorable social conditions.

This handoff is intended to allow greater network flexibility. The Générale de Télephone points of sale have a collective agreement that allows for longer working hours, fewer vacations and less distribution of profits.

For its part, the CFE-CGC estimates that this subsidiary saves 20% in operating costs and that it will cause the departure of several hundred vendors.

This internal “reclassification” will run from 2023 to 2026 and will affect some 1,000 employees who, however, may refuse to be transferred to Générale de Télephone. Officials in particular, who will not want to change their statutes. They still represent 40% of the workforce at Orange France, but only 10% in stores.

Unions denounce payroll cuts

The group has never hidden its desire to reduce its weight but promises not to carry out “any dismissal or forced exit”. He justifies this decision by the consumption patterns that have changed. “Traffic in stores has fallen by 30% since the Covid crisis,” explains a spokesman.

Shops will be closed, the smallest ones will be reopened, especially in the provinces, for a total of 100 more points of sale by 2026, promises the Orange management. “But the objective is to reduce businesses to lower the payroll and costs of Orange France”, specifies a representative of the CFDT.

Orange also seeks to adapt the cost of its network to that of its competitors. Bouygues and SFR (Altice Group, also owner of BFM Business) have long housed their stores in a dedicated distribution subsidiary, although they have more than just Orange. Free stands out with only 200 stores but a thousand automatic terminals to buy SIM cards.