Circular to the workforce: Zalando is cutting hundreds of jobs

The online fashion retailer Zalando has declared in a circular that it intends to cut hundreds of jobs. As several media reports unanimously, the two bosses justified the step by saying that they had grown too much in the past few years.

The online fashion retailer Zalando is cutting hundreds of jobs in view of a lower buying mood among many consumers. The company informed its employees of this in a circular, which is available to the news agencies dpa and Reuters, among others.

The letter states that Zalando will start a program at the end of which “several hundred” jobs will be lost. Zalando currently has around 17,000 employees. The company has not yet confirmed reports of the job cuts.

Managers are also affected

Many areas of Zalando are involved in the program mentioned – such as administration and management level, the dpa quotes from the letter. The logistics centers, customer service and branches are therefore not affected. According to information from the “Frankfurter Allgemeine Zeitung” (FAZ), this also applies to operational positions at Zalando Studios, where, among other things, the product photos for Zalando and third parties are created.

Consultations should begin as soon as possible

The board itself does not yet know which other areas are affected and how badly, the FAZ continues. The consultations with the employee representatives should therefore begin as soon as possible.

According to the FAZ, the two Zalando bosses and founders Robert Gentz ​​and David Schneider are keeping a “wide range” of options open – including potential internal transfers, further training or “support with reorientation”. Volunteer programs in the affected areas are also conceivable.

“Grown Too Much”

Referring to the circular, Reuters reports that one reason for the job cuts is that some areas of the company have “grown too much” in recent years. The letter also said: “This is a very difficult but necessary step in order to make the best possible use of the challenges and opportunities that the future holds for us.”

First, the “Financial Times” reported on the plans. Zalando had given a cautious outlook when it published its quarterly figures in November 2022. At the same time, the Dax group warned that the medium-term goals would probably only be achieved with a delay. The Berlin group had also warned in November that the medium-term goals would probably only be achieved with a delay.