EMCC European Monitoring Centre on Change

Otto

Company/Organisation:
Otto

Geographic Location

Country: Germany
Region: Hamburg
Location of affected unit(s): Hamburg

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.91 - Retail sale via mail order houses or via Internet
Number Employed: 12000
Group: Otto

Employment Effects

Announcement Date: 21-01-2004
Planned Job Reductions min: 400
Planned Job Reductions max: 500
Type of Restructuring: Internal restructuring

Additional Information

Otto, mail-order shopping company, announced on 21 January 2004 its plan to cut some 500 of the 3,000 jobs at its corporate headquarters as a result of a weak retail market. The company said it would avoid direct dismissals and rely on attrition to slim down its payroll. Otto officials also said they would seek to cut administrative costs by 25%, including major reductions in employee travel expenses. Otto employs 66,000 persons worlwide whereof some 12,000 in Germany.