BERLIN, Feb 21 (Reuters) – German online fashion retailer Zalando ( ZALG.DE ) is set to cut hundreds of jobs at the company, citing over-expansion in some areas and a tougher economic environment.
The epidemic It boosted business in 2020 and 2021, but from 2022 these tailwinds have faded and the macroeconomic environment has become more challenging, Zalando said.
“We have decided to initiate a program that will eliminate hundreds of responsibilities across many of our teams,” the company said in a statement Tuesday.
“Over the past few years, some parts of our company have grown significantly and added a level of complexity to our organization that is affecting our ability to act quickly.”
Zalando, which employs about 17,000 people, did not provide details on which locations would be affected by the cuts.
“This program will involve many parts of Zalando, including at the senior management level,” he added.
But the company said roles in logistics centers, customer care and stores, as well as Zalando Studios, will not affect frontline operations roles.
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The planned job cuts were first reported by the Financial Times, which said the online retailer would cut its workforce by up to 5%.
Zalando shares were down 1.6% at 1448 GMT.
In its third-quarter earnings report in November, Zalando said it expected full-year revenue and operating profit to come in lower than expected, citing low consumer sentiment and high inflation. The company will report full-year earnings next month.
Credit Suisse analysts said: “3Q has shown some improvement in the area of profit protection/inventory management and we expect more in 4Q. Potential margin upside but lower revisions (earnings)”.
By Hakan Ersen, Rachel More, Tristan Chaba and Ozan Ergenay, writing by Mathias Williams, editing by Miranda Murray and Jane Merriman
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