Zalando is cutting several hundred jobs

Berlin The Berlin Dax group Zalando is cutting hundreds of jobs. The company bosses Robert Gentz ​​and David Schneider explained the step in a letter to the employees on Tuesday with the fact that Zalando is not where the company should be. That is why decisive action is now required.

Europe’s largest fashion platform has created many jobs, especially during the corona pandemic, and now has more than 17,000 employees. Some areas have grown too much and the company has become too complex to be able to act quickly, the company founders explained: “That’s up to us.”

According to the letter, many areas are affected by the job cuts, and high-ranking managers should also have to go. Discussions with the works council begin immediately. Only operationally active logistics employees, customer advisors and employees of the outlet centers such as photo studios should be exempt from the deletions. Details are still unclear. Zalando shares were down around 1.5 percent on Tuesday afternoon.

Zalando: There is no tailwind from the corona pandemic

Gentz ​​and Schneider, who founded Zalando 15 years ago, justified the measures with macroeconomic challenges and the decreasing tailwind after the pandemic. The subdued consumer climate and high inflation have been troubling online retailers for months.

On March 7, Zalando will give an insight into the business figures for 2022. The outlook for the current year is eagerly awaited. Zalando currently has more than 50 million customers in Europe and generates sales of more than ten billion euros.

However, the double-digit growth figures from the Corona period are a long way off. It could even be that sales stagnated last year. This is primarily a problem for the medium-term goal. Because by 2025 Zalando wants to achieve a gross goods value of 30 billion euros. The company is currently at about halfway.

In terms of operating profit, Zalando most recently forecast adjusted gross profit (EBIT) of between 180 and 260 million euros for 2022. Co-boss Robert Gentz ​​announced in an interview with Handelsblatt last year that he would put profitability before growth. Cost efficiency is a big issue for the company.

>> Read about this: Minimum order value and less growth: Europe’s largest fashion platform changes strategy

Like many other technology and fashion groups, Zalando had recently held back on investments and hired fewer people. Benjamin Kohnke, an analyst at Stifel, sees the exit from less profitable businesses like style advice service Zalon and the introduction of minimum order values ​​for free delivery as positive steps. However, these were apparently not enough.

Zalando is not alone in cutting jobs. The food delivery service Delivery Hero Version recently laid off 156 employees at its Berlin headquarters. The company, which has meanwhile also been represented in the leading index Dax, justified the decision by making itself leaner and more efficient.

More: Is joining Zalando worth it?

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