Otto to Lay Off Approximately 480 Call Center Employees

In a significant restructuring effort, Otto, the Hamburg-based online retailer, has announced plans to lay off around 480 employees from its call center operations. The company has cited several factors contributing to this decision, including intensified competition, a sluggish economic climate in Germany, and evolving customer communication preferences.

According to the announcement made by Otto, the company will be closing eight of its thirteen customer service locations by August 31. The affected sites include Alzenau, Bad Salzuflen, Bochum, Niederzier, Kassel, Leipzig, Stuttgart, and Nürnberg. Meanwhile, customer service operations will continue at five remaining locations in Magdeburg, Neubrandenburg, Hamburg, Dresden, and Erfurt, where approximately 700 employees will remain employed.

Otto's management emphasized that the traditional telephone contact method has become less significant as customer interactions increasingly shift towards digital channels. This change in contact behavior has rendered the current customer service structure economically unviable.

In an effort to support those impacted by the layoffs, Otto has committed to providing affected employees with severance packages or opportunities to transition to a transfer company. This transfer organization will temporarily employ the workers, offer further training, and assist them in re-entering the job market. Additionally, Otto plans to enhance the transfer short-time work allowance to provide further financial support during this transition.

The decision to downsize operations follows broader trends in the retail sector, where many companies are adapting to new market dynamics and consumer behaviors. As the landscape continues to evolve, companies like Otto are reassessing their operational strategies to ensure sustainability and competitiveness.