Otto to Close 480 Customer Service Positions
Otto has confirmed that it will cease operations at 13 customer service locations by August 2025.
One of Germany’s largest online marketplaces, Otto, has announced plans to eliminate 480 call center positions, leading to the closure of several customer service locations across the country.
Otto is Experiencing Financial Difficulties
Otto has been facing ongoing financial difficulties. After opening its platform to third-party sellers in 2020, the company aimed to expand its marketplace to include sellers from across Europe by spring 2024. However, around the same time, Otto sharply increased its seller fees from €39.90 to €99.90 per month. In response to this price hike, nearly 1,200 sellers closed their accounts in the five months that followed.
AI Begins to Replace Human Customer Support
In a bid to cut costs, Otto has decided to scale back its customer service operations. The company no longer views traditional customer service as profitable, believing that phone support has become less relevant. Most customer inquiries and issues are now handled through emails, online forms, live chats, or AI-driven bots, reducing the need for a large human workforce.
13 Customer Service Centers to Shut Down by August 2025
As part of this downsizing, Otto plans to terminate at least 480 positions. The company has confirmed that it will cease operations at 13 customer service locations by August 2025.
700 Employees to Stay On as Cost-Cutting Continues
Despite the layoffs, Otto will retain 700 customer service employees. Those affected by the job cuts will receive severance payments, with the company already determining the maximum compensation amount. In addition to workforce reductions, Otto is reportedly exploring other cost-saving measures to stabilize its financial position.