Otto Aims for €10 Billion in Revenue by 2028
Otto to cut 460 jobs in Hamburg despite revenue growth and expansion plans
Hamburg-based online retailer Otto is targeting €10 billion in revenue by 2028, yet the company remains committed to its plan to cut 460 full-time positions in Hamburg.
The job reductions are expected to lower annual costs by €110 million by the 2027/28 fiscal year. In the last fiscal year, Otto generated roughly €7.5 billion in revenue—a six percent increase over the previous year—while its customer base grew by four percent to 12.6 million.
Otto continues to expand its product range: the platform now offers 19 million items from 40,000 brands across 6,100 partners. Recent additions include non-perishable groceries, pet supplies, cosmetics, and experience vouchers, with books set to be added in spring.
The company also plans to bring international sellers from the Netherlands, Poland, Austria, France, and Spain onto its platform, with Denmark expected to join in early 2027.
Job Cuts Under Socially Responsible Framework
Otto employs 4,900 staff nationwide and is part of the Otto Group, which has a total workforce of 36,000. In coordination with its works council, the company has agreed on a voluntary program that includes phased early retirement, mutual termination agreements, and transfer companies to support affected employees.
Boris Ewenstein, chairman of Otto's executive board, emphasized: "We will implement these changes as fairly, respectfully, transparently, and in as socially responsible a manner as possible."
Executive: Retail Entering a New AI-Driven Era
According to Otto's corporate website, executive Boris Ewenstein believes retail is on the brink of a new era shaped by artificial intelligence. AI is fundamentally transforming both customer expectations and online service capabilities.
Otto is focusing on AI-powered shopping experiences, ranging from hyper-personalization to digital expert advice via AI assistants. Additionally, the company is enhancing its data quality to improve the visibility of its offerings across external systems.
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