Otto slashes 460 jobs in Hamburg despite €7.5 billion revenue surge
Otto, the retail giant within the Otto Group, has announced plans to cut 460 full-time jobs in Hamburg by 2028. The company, which currently employs 4,900 staff nationwide, is framing the reductions as part of a socially responsible restructuring effort. Despite the job cuts, Otto reported strong growth last year, with revenue rising to €7.5 billion. The job reductions aim to reduce annual costs by €110 million by the 2027/28 fiscal year. Otto will offer phased early retirement, mutual termination agreements, and support through transfer companies to help affected employees transition. These measures come as the company expands its product range and customer base.
Last fiscal year, Otto's revenue climbed six percent to €7.5 billion, while its customer base grew four percent to 12.6 million. The retailer now offers 19 million items from 40,000 brands across 6,100 partners. Recent additions include non-perishable groceries, pet supplies, cosmetics, and experience vouchers, with books set to be added in spring.
Otto is also expanding internationally by bringing sellers from the Netherlands, Poland, Austria, France, and Spain onto its platform. Dutch partners will join in the first half of 2025/26, followed by the others by year-end, while Danish sellers are expected in early 2027. The company has set an ambitious revenue target of €10 billion by 2028. The restructuring will see 460 jobs removed over the next four years, with cost savings of €110 million annually by 2027/28. Meanwhile, Otto continues to grow its product range and international seller network. The company remains focused on reaching €10 billion in revenue by 2028.
