What: In response to the challenges of a difficult 2023, Falabella has implemented a contingency plan involving the reduction of up to 400 jobs across its three main operating markets: Chile, Peru, and Colombia.

Why it is important: The company is focused on an expense reduction plan and asset sales to strengthen its financial position and return to pre-pandemic debt levels.

Falabella has expressed appreciation for the contributions of the affected workers and emphasized a respectful separation process, with intentions to provide benefits to mitigate their situation. This strategic decision comes as the company faces declining financial indicators, a negative rating from Fitch Ratings, and the forthcoming resignation of its general manager effective January 2024.

Falabella cuts 400 jobs in its 3 main operating markets