Zalando calls it "a difficult but necessary decision": the logistics center in Erfurt, Germany, is to be closed by the end of September. For more than ten years, 2,700 employees there made a significant contribution to the company's success. Now, restructuring is underway.
Customization recommendations at Zalando
The company management has announced that its Europe-wide logistics network is being restructured to strengthen its position in the European fashion and lifestyle market. Following the completion of the planned adjustments, the Zalando Group's network will comprise 14 logistics centers in seven countries.
2700 employees laid off
Zalando started in 2008 with simple storage shelves in the basement of its first office on Torstrasse in Berlin, and today sees itself as Europe's leading e-commerce platform for fashion and lifestyle with the growth areas of business-to-consumer (B2C) and business-to-business (B2B).
All photos: Zalando
its own statements, the company offers more than 61 million active customers in 29 markets in the B2C sector, with its Zalando and About You platforms, fashion and lifestyle products from numerous brands, all from a single source. In the B2B sector, its offerings include Zeos, Tradebyte, and Scayle, a highly rated operating system for online fashion and lifestyle retail with its own logistics, software, and service infrastructure, designed to support brands and retailers in expanding and managing their online businesses in Europe.
61 million customers
In recent months, the company thoroughly reviewed its Europe-wide logistics network and developed a plan "to align logistics capacities within the joint Zalando and About You network with demand and to future-proof it."As part of this process, the difficult but necessary decision was made to close the logistics center in Erfurt. "Furthermore," the statement continues, "we will not renew the contracts for three locations outside Germany that are operated by external service providers for Zalando and About You ."
This decision was not made lightly. "We are extremely grateful to all affected employees for their contribution and deeply regret the impact this decision will have on the workforce."
Works council involved
Negotiations will begin with the Erfurt works council regarding a reconciliation of interests and a social plan. A comprehensive support program has been developed in collaboration with external experts to assist employees throughout this process. "We feel connected to Erfurt and the region and will work with local authorities and civil society organizations to jointly try to mitigate the impact."
Zalando board
The planned changes to the Europe-wide logistics network are intended to ensure that Zalando continues to grow as planned – in line with the existing medium-term targets for an average annual growth rate of 5 to 10 percent in both gross merchandise volume (GMV) and revenue.
Desired goal: "Seamless processes"
The focus is now on building an integrated and scalable logistics infrastructure to drive growth ambitions in both the B2B and B2C business. This will enable flexible warehousing and universal order processing, leading to seamless processes, reduced complexity, and greater efficiency and speed within the logistics network, and should bring significant benefits to customers and partners.
