Zalando to cut hundreds of jobs

Zalando is planning to cut up to 5 percent of its employees. The online fashion giant said in a note to staff it would eliminate hundreds of jobs. This makes Zalando part of a growing list of ecommerce companies laying off staff due to the current economic situation.

Only around half a year ago, Zalando put off a launch in the United States due to disappointing financial results. The retail giant follows in the footsteps of companies like Bol.com, Shopify and Amazon amid a wave of ecommerce layoffs.

Several hundred jobs

Zalando’s workforce received a note from co-founders Robert Gentz and David Schneider on Tuesday. It says that the company will ‘remove several hundred overhead roles’ in the next few months. The cuts are mostly aimed at senior leadership level. Workers in logistics centers, customer care and brick and mortar stores will be spared, the founders write. The same goes for operational jobs in Zalando Studios.

‘We are not where we need to be’

Even though there was significant growth in the past few years, the note says, there is a current economic slowdown after the pandemic. The co-founders write that ‘the pandemic tailwinds have faded since 2022 and the macroeconomic environment has become more challenging.’

“We need to be a big company with a small structure.”

Gentz and Schneider continue: “We are not where we need to be and as a result, we must take even more decisive action.” The note also says that Zalando needs to be a ‘big company with a small company structure’: “We have added a degree of complexity to our organization that impacted our ability to act fast.”

US launch postponed, Zircle discontinued

Only last summer, Zalando postponed a potential launch in the United States due to persisting inflation and supply chain disruptions. In June, the retailer’s shares dipped below its initial public offering price in 2014. The platform has also discontinued its pre-owned fashion store Zircle, operating in Germany, Sweden and Denmark, this past November.