Zalando to Close Major Logistics Hub in Erfurt, Impacting 2,700 Jobs
German online fashion retailer Zalando has announced plans to shut down its large-scale logistics center in Erfurt, a move that will affect approximately 2,700 employees. The company, based in Berlin and listed on the DAX, has confirmed that operations at the Erfurt site will continue as usual until the end of September, after which the location will be closed as part of a broader restructuring of its European logistics network.
According to Zalando, the decision to close the Erfurt facility follows the recent acquisition of About You, another major online fashion retailer. Integrating About You into Zalando's logistics operations has prompted a reevaluation of the company's warehouse distribution and network efficiency across Europe. As a result, the Erfurt site, which is the only Zalando-owned logistics center of its size in eastern Germany, will cease operations by the end of September, with the local operating company winding down by the end of the year.
Zalando has indicated that discussions are underway with the site's workers' council to negotiate a reconciliation of interests and a social plan aimed at supporting affected employees. The company has stated its intention to provide financial assistance to those impacted by the closure and to help them find new employment opportunities, including potential roles at other Zalando locations such as the Gießen facility in Hesse, which is currently being expanded.
The announcement has drawn criticism from regional government officials and labor representatives. The closure was described as a significant blow to both the city of Erfurt and the broader economic landscape of eastern Germany. Local authorities noted that Zalando is the largest private employer in Erfurt, and expressed disappointment at not being consulted earlier in the decision-making process. Regional government representatives criticized the company's approach, highlighting concerns about transparency and the lack of opportunity to seek alternatives to the closure.
Labor unions have also voiced strong concerns regarding the communication and timing of the announcement. Union representatives claim that the possibility of closure was not disclosed during recent labor actions, including strikes at the Erfurt and Mönchengladbach sites. They allege that Zalando may have deliberately withheld information to ensure smooth operations during the crucial holiday season. The union has called for more investment in site infrastructure and greater involvement in discussions about the future of the facility.
The Erfurt logistics center has been in operation since 2012 and serves as a key hub for Zalando in eastern Germany. The company also operates major logistics centers in Gießen, Lahr in the Black Forest, and Mönchengladbach. Following the planned restructuring, Zalando intends to maintain a total of 14 logistics centers across seven countries in Europe.
This strategic move comes as the online retail sector continues to adapt to changing market conditions and increased competition. Zalando's decision reflects ongoing efforts to streamline its logistics network and enhance operational efficiency in the wake of recent acquisitions and evolving consumer demands.