What's Happening?
German online fashion retailer Zalando has announced the closure of its logistics center in Erfurt, Germany, by the end of September, impacting 2,700 employees. This decision is part of a strategic realignment of Zalando's Europe-wide logistics network
following its acquisition of the online fashion retailer About You last year. The Erfurt site, which opened in 2012, is the only company-owned logistics hub of this scale in East Germany. The company plans to cease operations at the site by the end of the year, with work continuing as normal until then. Discussions with the site's works council are underway to develop a reconciliation of interests and a social plan for the affected employees. Zalando co-CEO David Schröter has stated that the company is prepared to offer financial support to help employees find new jobs, potentially at the Zalando site in Gießen, which is still under construction.
Why It's Important?
The closure of the Erfurt logistics center is significant as it affects a large number of employees and highlights the ongoing restructuring within the retail industry, driven by acquisitions and strategic realignments. For Zalando, this move is part of a broader effort to optimize its logistics network across Europe, which could enhance its operational efficiency and competitiveness. However, the decision has drawn criticism from the Verdi union, which claims that the closure was known before the Christmas trading period, suggesting that employees were kept in the dark to secure business during a critical sales period. This situation underscores the challenges faced by workers in the retail sector, where job security can be impacted by corporate restructuring and market dynamics.
What's Next?
Zalando will continue discussions with the works council to finalize a social plan for the affected employees. The company aims to provide job prospects for as many employees as possible, potentially at other Zalando sites. The Verdi union may continue to advocate for the workers, possibly leading to further negotiations or actions to secure better terms for those impacted by the closure. The outcome of these discussions will be crucial in determining the future employment opportunities for the affected workers and could influence labor relations within the company.
