The Swiss Marketplace Group (SMG), a marketplace venture by Scout24 Switzerland and TX Markets, has announced that it will introduce job cuts. Out of 638 employees in Switzerland, 70 will be affected by a reorganization, the company said.

At the end of May, SMG CEO Gilles Despas announced at an informational event that a potential reorganization of the Swiss operations might take place. A consultation process with employees began on May 24 and was completed on June 6. The companies say that the merger of Scout24 Switzerland and TX Markets to form SMG has led to overlaps in resources and competencies.

During the consultation period, employees had the opportunity to share their thoughts, opinions and questions. SMG told the AIM Group that during the consultation, there were proposals to avert job cuts through part-time work. However, these and other proposals could not solve the root cause of the problem of overlapping resources, the firm said.

The company voluntarily offered the employees leaving the company an improved social package that is superior to the usual packages of other digital companies.

Daniel de Carvalho, group director of Corporate Communications for SMG, told the AIM Group: “The measures taken will enable us to position SMG’s brands even more strongly and in a more targeted manner and to optimize its products and services even more efficiently. On the one hand, a strong Swiss marketplace operator offers its customers advantages. At the same time, SMG can face the challenges of global competitive pressure. The large international marketplaces are not tailored to the needs of local customers and users. SMG’s goal remains unchanged: to build a successful and strong network of online marketplaces that helps the Swiss population to make some of the most important decisions in life with future-oriented products.”

SMG has further relayed to the AIM Group that prior to the joint venture, SMG employed in the extended group, i.e. with affiliated companies and including team members working abroad, around 900 people.

At the beginning of June, 638 people were employed directly by SMG and its sites throughout Switzerland, excluding employees at CASASOFT AG and IAZI AG, as well as team members working abroad.

SMG Swiss Marketplace Group AG is a network of online marketplaces. Its portfolio, following the merger, includes real estate (immoscout24.ch, homegate.ch, ImmoStreet.ch, home.ch, Acheter-Louer.ch), automotive (motoscout24.ch, autoscout24.ch, Car For You), general marketplaces (Ricardo.ch, anibis.ch, tutti.ch) and finance and insurance (financescout24.ch). The joint venture is owned by TX Group AG (31%), Ringier AG (29.5%), Mobiliar (29.5%) and General Atlantic (10%).

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