German retailer Otto will cut 480 jobs as customer calls drop. It will close 8 of 13 service centres in Germany by August 31, keeping 700 employees.
Otto, one of Germany’s top e-commerce companies, is cutting 480 call centre jobs. The shift comes as customers prefer digital contact over phone calls. Otto announced the layoffs on February 18, citing market changes and Germany’s weak economy.
By August 31, Otto will close 8 of its 13 customer service centres. The remaining five will be in Magdeburg, Neubrandenburg, Hamburg, Dresden, and Erfurt. The company will still employ around 700 people in customer service roles.
Otto is offering severance pay or a transfer program for affected employees. The transfer company will provide training and aim to help them find new jobs. This move is part of Otto’s effort to manage layoffs responsibly.
Competition is rising, and Germany’s economy remains weak, forcing Otto to adapt. As customers shift to online chat and self-service, phone support is shrinking. Otto is restructuring to stay competitive in a changing market.
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