Hamburg-based online retailer Otto Group reported a 6% increase in revenue to approximately €7.5 billion in the past fiscal year, alongside a 4% rise in customer numbers, reaching 12.6 million. Despite this positive performance, the company announced plans to cut hundreds of jobs at its Hamburg location, signaling a strategic shift towards automation and artificial intelligence to drive further growth.
The company aims to increase revenue to €10 billion by 2028, a goal it intends to achieve, in part, through AI-powered shopping experiences. This includes expanding the use of artificial intelligence in customer service, supplementing traditional phone support with AI-driven assistance. Otto has already integrated AI into various operations, including ad creation, resulting in a reported 60% reduction in costs, according to the company.
Job Cuts Amidst Growth Plans
Despite the revenue gains, Otto plans to eliminate 460 positions in Hamburg, primarily within its marketing and IT departments. The company attributes these cuts to increased automation efforts designed to further reduce costs. Employees will be offered options for early retirement and severance packages, according to a statement released by the company.
