Type
Internal restructuring
Country
Germany
Region
Hamburg;
Location of affected unit(s)
Hamburg
Sector
Wholesale / Retail
Retail trade
Non-specialised retail sale
47.12 - Other non-specialised retail sale

400 - 500 jobs
Number of planned job losses
Job loss
Announcement Date
21 January 2004
Employment effect (start)
Foreseen end date

Description

Otto, mail-order shopping company, announced on 21 January 2004 its plan to cut some 500 of the 3,000 jobs at its corporate headquarters as a result of a weak retail market. The company said it would avoid direct dismissals and rely on attrition to slim down its payroll. Otto officials also said they would seek to cut administrative costs by 25%, including major reductions in employee travel expenses. Otto employs 66,000 persons worlwide whereof some 12,000 in Germany.


Sources

  • 20 January 2004: Otto - Press releases
  • 21 January 2004: Financial Times Deutschland
  • 26 January 2004: NDR Online

Citation

Eurofound (2004), Otto, Internal restructuring in Germany, factsheet number 58973, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/58973.