Online fashion giant Zalando is scaling back marketing in preference to cutting jobs amid challenging conditions.

Zalando founder Robert Gentz

Zalando co-founder Robert Gentz aims to avoid job losses

Zalando co-founder Robert Gentz told the Financial Times that the retailer will be cautious about hiring new people, but that “our plan is to keep employment by the end of this year steady”.

After online sales soared during the pandemic, growth rates have since fallen back as shoppers have become more cautious as the cost of living rises. At the same time, many retailers have faced increases in their own costs.

Gentz told the newspaper that Zalando has so far been able to offset price increases by focusing on profitability and reducing marketing expenditure. It has also limited free shipping.

Earlier this month, Germany-based Zalando reported that second-quarter sales slipped 4% in tough trading conditions. 

Zalando’s competitors, such as Asos and Boohoo, have also found trading to be challenging in recent months.

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