French Court of Appeal Invalidates Auchan's 2024 Job-Cut Social Plan

On January 7, 2026, the Douai Administrative Court of Appeal confirmed the invalidation of Auchan's controversial social plan initiated in November 2024, which aimed to cut approximately 2,400 jobs. The ruling, upheld on procedural grounds, highlights insufficient data presented by Auchan’s management to the economic and social committees (CSE), preventing a proper assessment of the plan.

The plan originally sought to eliminate 2,389 positions to restructure the company amid economic challenges. Despite the invalidation, the court's decision does not annul the layoffs already executed nor the fundamental principle of the social plan itself. Auchan, part of the Mulliez family business group, described the ruling as "legally incomprehensible" and announced its intention to appeal before the Conseil d’État, France’s highest administrative court.

The court found that during the consultation process, Auchan provided incomplete data by omitting information related to Suraumarché, the parent company controlling eight subsidiaries involved in the plan. Suraumarché is largely owned by three major companies within the Mulliez group, which share aligned management and corporate strategies. This omission impaired the CSE's ability to give an informed opinion on the proposed job cuts.

Of the 2,400 employees targeted by the social plan, 1,990 have reportedly found alternative solutions such as internal reclassifications, early retirements, or business creation. In November 2025, Auchan announced plans to convert 300 supermarkets to competing brands Intermarché and Netto while assuring no job losses would result from this transition.

The CGT-Commerces et Services union, which initiated the legal challenge, has demanded the immediate reinstatement of employees whose contracts were terminated. Meanwhile, Auchan is reviewing the consequences of the ruling on employee compensation and its restructuring strategy while pursuing its appeal.