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HAMBURG – The Hamburg-based retail and logistics giant, Otto Group, has announced a new round of job cuts as part of a strategic effort to further reduce operational costs. The company, which faces intense competition from global e-commerce leader Amazon, is shifting its focus to streamline its central divisions.
New phase of cost-cutting
The announcement on November 9, 2026, confirms that the company must continue its efforts to lower expenses to remain competitive in a challenging market environment. While previous restructuring measures have already been implemented, this latest phase specifically targets the core functions of the organization.
As of the end of 2025, the Otto Group headquarters in the Bramfeld district of Hamburg employed just over 8,000 people. Management has not yet disclosed the exact number of positions to be eliminated in this new round, but confirmed that the focus is on central administrative and operational support areas.
Context of the restructuring
The retail industry has faced significant pressure due to changing consumer habits, rising operational costs, and the dominant market position of international competitors. The Otto Group, a major player in European e-commerce, has been working to adapt its business model for several years.
The company’s leadership emphasized that these measures are necessary to ensure the long-term viability of the group. Further details regarding the timeline of the layoffs and potential severance packages are expected to be communicated to the affected staff and the works council in the coming weeks.
Reaction from the works council
The works council has been informed of the plans and is currently in discussions with management to minimize the impact on employees. Representatives have expressed concerns regarding the scale of the cuts and are advocating for socially responsible solutions for those whose roles are impacted by the restructuring.
Further updates on the restructuring process will be provided as the company finalizes its plans for the central divisions.
Source: Hamburger Abendblatt
