The online retailer Otto plans to cut nearly 460 full-time positions, mainly at its Hamburg site. The measures aim to simplify structures and reduce costs. The company emphasizes implementing the changes fairly and in a socially compatible way.
The Hamburg-based online retailer Otto announces the elimination of nearly 460 full-time positions, primarily at its Hamburg location. Major changes are planned in the areas of marketing, controlling, and tech, as the company stated upon request. "This difficult decision was not taken lightly and is the result of several months of constructive negotiations with the Otto works council," a company statement said. The "Hamburger Abendblatt" first reported on it.
The goal of the measures is to simplify internal structures, reduce bureaucracy, cut costs, and position the company securely for the future. By the fiscal year 2027/28, the annual cost base is to be reduced by 110 million euros to 500 million euros. The restructuring process has been underway since February 2025 and includes a strategic reorientation: The traditional mail-order business is losing importance, while the marketplace and platform business is to be expanded and processes digitized.
One year ago, Otto dismissed nearly 500 customer service employees, as phone contacts are declining in favor of self-service offers and digital channels. The current job cuts are causing uncertainty among the workforce, as specific plans are still pending. Otto promises to handle the changes "as fairly, respectfully, transparently, and socially compatibly as possible." Affected employees will receive offers for partial retirement, terminations with severance, and the option to transfer to a transfer company, which temporarily takes them on, provides further training, and places them back on the job market.
