The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale Via Stalls And Markets Or Other 47.91 - Retail sale via mail order houses or via Internet
400 - 500 jobs Number of planned job losses
Announcement Date
21 January 2004
Employment effect (start)
Foreseen end date
Description
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.
Sources
20 January 2004: Otto - Press releases
21 January 2004: Financial Times Deutschland
26 January 2004: NDR Online
Citation
Eurofound (2004), Otto, Internal restructuring in Germany, factsheet number 58973, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/58973.
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