The German online retailer Otto is planning to eliminate nearly 460 full-time positions, primarily in Hamburg, as part of a restructuring effort to simplify internal processes and reduce costs.
Otto, the Hamburg-based online retailer, has announced plans to cut approximately 460 full-time jobs, particularly at its Hamburg location. This decision, as reported by the Hamburger Abendblatt, comes after months of negotiations with the company's workers' council and aims to simplify internal structures, reduce bureaucracy, and ultimately lower operational costs. The restructuring is expected to reduce annual costs by €110 million to a total of €500 million by the fiscal year 2027/28.
The company has indicated that these changes, while difficult, are necessary to secure its future in a competitive online market. Otto has committed to handling the upcoming changes in a fair, respectful, and transparent manner. To support affected employees, the company plans to offer options such as early retirement programs and severance packages, as well as the possibility of transitioning to a transfer company for those who may need it.
This restructuring highlights the challenges faced by online retailers as they adapt to changing market conditions and consumer behavior. With increasing pressures to streamline operations and cut costs, companies like Otto are making tough decisions that may impact employment significantly while trying to ensure long-term viability in the competitive landscape of online commerce.
