Zalando Erfurt logistics centre closure secures multi-million euro social plan for 2,100 workers
Zalando Erfurt logistics centre closure: a court-ordered settlement delivers a multi-million euro social plan and severance for 2,100 jobs as operations shift to Gießen.
Closure agreement and social plan
Zalando’s decision to close its Erfurt logistics centre has resulted in a multi-million euro social plan to compensate affected employees. The agreement, confirmed by the works council and a company spokesperson, follows months of stalled negotiations and a ruling by a conciliation body that set severance terms for the roughly 2,100 staff who will lose their jobs.
Company officials say the closure remains scheduled for the end of September 2026, after an announcement in January 2026 that the site would be shut as part of a network realignment. The social plan is intended to provide one-off payments and other supports to staff displaced by the shutdown.
Breakdown of failed talks and transfer company dispute
Negotiations between Zalando management and the works council repeatedly broke down over several issues, the works council said, most notably the company’s refusal to fund a transfer company. A transfer company would have offered structured support and helped workers find alternative employment, but management declined to commit additional funds for that measure.
Trade unions and the works council criticized the refusal, describing Zalando’s stance as unacceptable and harmful to employees. Company representatives argued that the financial provisions already earmarked would cover severance and potential transitional costs without creating a separate transfer fund.
Court involvement and conciliation body decision
As talks faltered, the labour court in Erfurt was petitioned and a court-appointed conciliation body (Einigungsstelle) intervened to resolve disagreements. The conciliation body ultimately prescribed the compensation framework after management and the works council failed to reach a voluntary settlement.
The conciliation body’s ruling sets binding terms for severance and the social measures, according to the works council, and ends the impasse that had left workers and local officials concerned about the timetable for the closure.
Financial provisions and company rationale
Zalando has booked provisions of €80 million to cover costs associated with the Erfurt closure, a company spokesperson confirmed. The provisions are intended primarily for severance payments but can also be used to cover additional expenses such as temporary staffing or other closure-related costs.
Management has defended the move as part of a broader reorganisation of its European logistics network following the acquisition of About You. The company says the network realignment will improve long-term efficiency while consolidating operations at new and existing hubs.
New Gießen site and operational shift
As part of the restructuring, Zalando plans to open a new logistics location in Gießen, which the company says will play a central role in its revised distribution strategy. The corporation has framed the opening of the Gießen site as a strategic investment that will modernise fulfilment capacity across its European footprint.
Employees in Erfurt will not automatically transfer to Gießen, and the company has stated that hiring for the new site will follow standard recruitment processes. The gap between the Erfurt closure and recruitment at alternative locations has fuelled concerns among local politicians and unions about unemployment and regional economic impacts.
Political and union reactions
Local and regional officials, including representatives of the Thuringian state government, criticised Zalando’s handling of the process and urged more collaborative efforts to protect jobs. Unions and the works council staged protests and issued formal complaints as negotiations dragged on earlier this year.
The works council described the company’s reluctance to fund a transfer company as “shameful,” saying it left workers with fewer options during a rapid and disruptive transition. Political leaders have called for strengthened support measures for affected employees and closer dialogue between employers and regional authorities.
The conciliation body’s decision brings legal clarity but does not end debate over corporate responsibilities in large-scale restructurings. Observers say the case may prompt further scrutiny of how e-commerce firms implement network changes that affect major regional employers.
The closure now advances toward the planned end-September 2026 shutdown, and affected employees will receive the severance and social measures set out by the conciliation body. Unions and local officials say they will continue monitoring implementation and press for additional support where needed, while Zalando moves ahead with its stated logistics realignment and the development of the Gießen facility.
