German online fashion retailer Zalando said Thursday it would close a distribution centre in the eastern city of Erfurt with 2,700 employees to restructure its European logistics network.

The centre, which accounts for nearly one-sixth of Zalando’s workforce, will cease operations by the end of September, the company said in a statement.

“We have made the difficult but necessary decision to close our fulfillment centre in Erfurt,” Zalando said, using a term for a site where online orders are processed, packed, and shipped.

Zalando said it would “immediately begin negotiations” with unions on the options for affected employees.

The Ver.di services union, which represents Zalando staff, did not immediately respond to an AFP request for comment.

READ ALSO: Seplat Energy Appoints New UK Brokers

The company also said it would “discontinue operations” at three warehouses outside the country operated by corporate partners.

Zalando last year acquired local rival About You for 1.1 billion euros ($1.2 billion) to build a pan-European platform amid rising competition from Chinese online giants such as Temu and Shein.

“Following the successful teaming up between Zalando and About You, we are focusing on building an integrated and scalable platform that supports our growth ambition,” Zalando said.

“This will enable more flexible stock holding and universal order fulfilment, driving seamless operations, reduced complexities, increased efficiencies, and enhanced speed.”

Zalando is Erfurt’s largest private employer, and the city’s mayor, Andreas Horn, said he “deeply regretted” the company’s decision.

AFP

The post 2,700 Staff Affected As German Online Retailer Zalando Shuts Down Eastern Site appeared first on Channels Television.