Zalando plans to lay off hundreds of workers to cope with a “more challenging” economic environment after years of rapid growth.
The company is Europe’s largest online fashion retailer and co-chief executives David Schneider and Robert Gentz said in a letter to staff: “We have decided to start a programme that will remove several hundred overhead roles across many of our teams.”
The final details of the cuts are still being worked out, but the company has confirmed they will include senior-level positions.
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Areas not affected include customer service, logistics centres, and outlet store positions will not be affected, the company confirmed.
The job cuts at Zalando are the latest in a wave of layoffs in the tech industry around the world, as the once-unassailable sector braces for a downturn.
The German online fashion retailer, which operates in 25 European countries, currently employs approximately 17,000 people, and the proposed job cuts will affect 5 percent of the workforce.
As pandemic lockdowns forced more consumers online, Zalando was one of the big winners, but the end of that boom has hurt the retailer’s sales growth and hammered its share price.
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Last June, the company was forced to issue a profit warning after drastically lowering its full-year earnings forecasts due to the cost-of-living crisis.
Source: Retail Gazette
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