MyToys is disbanded and cuts 800 jobs
German ecommerce giant Otto Group has disbanded its toys platform MyToys. The platform was not able to become profitable. All of its stores will have to close. The decision leads to a cut of 800 jobs.
The German Otto Group owns several brands, including About You and Bonprix. Two weeks ago, the company shared its 2022 revenue forecast. It expected a revenue decrease of 2 percent in 2022, leading to a revenue of 12 billion euros.
Still available on Otto’s platform
Now the company has announced that it will disband all business operations and stores of platform MyToys.de by February next year. The brand will still be offered on Otto’s own platform.
MyToys was not able to become profitable.
MyToys was not able to become profitable, despite strategic realignments and high investments. According to Otto, a successful turnover combined with high investments, increasing costs and market pressure could not be planned.
Cut of 800 jobs
“Of course, this decision was extremely difficult for us, especially in view of the dedicated and professional work of all MyToys employees”, explained Otto’s ecommerce board member Sebastian Klauke. The discontinuation leads to 800 jobs being cut.
The Group will draw up a social plan for affected employees.
A reconciliation of interests is still to be negotiated. Additionally, the Group wants to create a social plan for the affected employees to mitigate the impact of the reorganization.