Zalando to close Erfurt site in Germany impacting 2,700 employees

German online fashion retailer Zalando is closing its logistics centre in Erfurt at the end of September, employing 2,700 people. The Berlin-based, Dax-listed company made the announcement. Employees are currently being informed of the plans.

According to the company, the reason is a realignment of its Europe-wide logistics network following the acquisition of online fashion retailer About You last year. The site's operating company in Erfurt, Germany, a subsidiary of the group, will therefore cease operations at the end of the year. Work will continue as normal until then.

The company is now starting discussions with the site's works council about a reconciliation of interests and a social plan. According to spokesperson Christian Schmidt, the aim is to provide prospects for those affected.

Zalando co-CEO David Schröter has indicated that employees will receive financial support. In an interview with the German newspaper "Frankfurter Allgemeine Zeitung", he announced that the group was prepared to make a significant contribution. The goal is for as many employees as possible to find new jobs, for example, at the Zalando site in Gießen in the neighbouring state of Hesse, Germany, which is still under construction.

Union: “was certainly known before Christmas”

The Verdi union describes the move as perfidious. In December, Verdi had called for a strike at the Erfurt and Mönchengladbach sites. To date, there has been no indication that a closure of the Erfurt site was even being considered, said Matthias Adorf, Verdi trade union secretary for commerce in the German state of Thuringia.

“This was certainly known before the Christmas trading period. They probably didn't just think of this on New Year's Eve,” said Adorf. From the union representative's perspective, the group kept the employees in the dark to secure the important Christmas business.

The Erfurt center, which opened in 2012, is currently Zalando's only company-owned logistics hub of this scale in East Germany. Following the restructuring, Zalando will maintain 14 logistics centers across seven countries, including German sites in Gießen, Lahr (Black Forest), and Mönchengladbach.

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