Otto Group Announces Significant Job Cuts in Hamburg
Hamburg, February 19, 2026 – The Hamburg-based online retailer Otto Group is set to eliminate nearly 460 full-time positions, primarily at its headquarters in Hamburg. This strategic move, announced by the company, is part of a broader effort to streamline internal structures, reduce bureaucracy, and cut costs to ensure the company’s future viability.
The job reductions will primarily affect departments such as marketing, controlling, and various tech sectors, according to a company statement. “This difficult decision was not made lightly and is the result of several months of constructive negotiations with the Otto works council,” the company stated, emphasizing the thorough process behind the restructuring.
Cost Reduction and Future-Proofing
Otto Group aims to reduce its annual cost base by 110 million euros, targeting a total of 500 million euros by the fiscal year 2027/28. This significant cost-cutting measure is central to the company’s strategy to adapt to evolving market conditions and enhance its competitive edge.
The company has committed to implementing these changes “as fair, respectful, transparent, and socially responsible as possible.” To mitigate the impact on affected employees, Otto Group plans to offer a range of support measures. These include early retirement schemes and severance packages. Additionally, employees may have the option to transition into a transfer company, which provides temporary employment, further training, and assistance in re-entering the job market.
Negotiations and Employee Support
The decision to reduce staff follows extensive discussions and negotiations with the Otto works council, underscoring the company’s commitment to a structured and considerate approach. The details of these negotiations were first reported by the “Hamburger Abendblatt.”
The Otto Group, a prominent player in the online retail sector, has been facing pressures to optimize its operations in a rapidly changing e-commerce landscape. The restructuring is expected to enable the company to operate more efficiently and respond more agilely to market demands.
The company’s focus on social responsibility during this transition is a key aspect of its communication regarding the job cuts. By offering various support mechanisms, Otto Group aims to assist its employees through this period of change and facilitate their professional transition.
This move is indicative of a broader trend within the retail industry, where companies are increasingly seeking to optimize their structures and reduce overheads in response to economic shifts and increased competition. The Otto Group’s actions reflect a strategic pivot towards a more agile and cost-effective operational model for the coming years.
