Zalando to cut hundreds of jobs amid challenging environment

European online fashion retailer Zalando has revealed it is set to cut hundreds of jobs as part of cost-saving measures amid what it called a “challenging” macroeconomic environment.

In a letter to staff, Zalando co-CEOs David Schneider and Robert Gentz revealed they have decided to start a program that will remove several hundred overhead roles across many of the company’s teams.

The pair said the programme will involve many parts of Zalando, including at the senior leadership level. While the letter also revealed Schneider and Gentz “don’t yet have full clarity on the impact on each area”, they said Zalando’s frontline operations roles in logistics centres, customer care and outlet stores, as well as operational roles in its Zalando Studios, will not be affected.

Zalando added that it is set to start consultations with its employee representatives and on how it intends to approach this programme, how it will support affected colleagues and the timeline the company will work towards.

Zalando said this will also include a broad range of options to support affected employees, including potential internal career moves, development and outplacement support.

Schneider and Gentz said in the letter: “Starting this program is one of the most difficult decisions that we [have] had to take. However, we know that this is the right thing to do for Zalando and for all the success and impact to come. We understand that this will be a challenging period for our community. But we trust that we will work through this together with care and support for each other.”

The news comes after Zalando revealed its revenues increased by 2.9% in its third quarter, in November of last year, with its adjusted EBIT increasing to €13.5m (£11.7m), up from €9.8m (£8.49m) in the same quarter a year ago.