A major cost-cutting initiative will result in the closure of eight out of 13 customer service centres, leading to the loss of several hundred jobs. Employees were informed of the decision on Tuesday morning. The closures will take effect by 31 August, affecting locations in Alzenau, Bad Salzuflen, Bochum, Niederzier, Kassel, Leipzig, Stuttgart, and Nuremberg.
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The Hamburg-based retailer, Otto, confirmed that 480 employees would be impacted, leaving only five remaining centres in Magdeburg, Neubrandenburg, Hamburg, Dresden, and Erfurt, with 700 staff members. The company cited declining telephone-based customer service usage as the primary reason for the decision.
According to Otto, customer preferences have shifted significantly, with more opting for self-service options via apps for tasks such as returns, exchanges, and account inquiries. Over the past five years, phone contacts have dropped by nearly 30%, while telephone orders have declined by 80%, now accounting for less than 1% of all orders.
In addition to these job cuts, the company plans to implement further cost reductions of €80 million in the 2025/2026 financial year. A spokesperson stated that Otto aims to strengthen its financial position in response to current market conditions. While it has undergone significant transformation, further process optimisation is necessary.
Despite the restructuring, Otto continues to see strong business performance, reporting record-breaking Black Friday sales and expecting growth in the upcoming Christmas season.
Source: www.moebelmarkt.de