German retailer Otto to lay off 480 call centre employees

Otto, one of Germany’s biggest e-commerce players, will lay off around 480 call centre employees as people turn away from telephone contact, the company said on Tuesday.

Otto cited changing customer contact methods as well as increased competition and the continuing weak economic situation in Germany as reasons for the lay-offs.

As telephone contact becomes less important, the current customer service structures are no longer economically viable, it added.

The Hamburg-based company plans to close 8 of its 13 customer service centres at various locations in Germany by August 31. In addition to external partners, customer services will remain in Magdeburg, Neubrandenburg, Hamburg, Dresden and Erfurt, employing around 700 people.

Otto said that it will offer the affected employees severance pay or a move to a transfer company, which will temporarily take on the employees, provide them with further training and, in the best case, reintegrate them into the labour market.