A spokesman for the home shopping group, which operates brands including Freemans and Grattan, said: “Another phase of restructuring in the new year will affect all other departments across the country.”
The news follows an internal announcement this week outlining possible job cuts across two departments to streamline operations.
Otto UK, which employs 4,200 people, is in a 90-day consultation process that could initially affect about 100 jobs across its buying and creative teams. One outcome could lead to the relocation of the departments to Otto’s parent company in Germany.
The spokesman said: “The restructure is all about bringing efficiencies and savings across the business. It is making the business fitter for the future.” He added that there had been no discussions about selling off any of the brands. Separate business units have been created for each brand across the business, with a director appointed to head up each one, which it hopes will lead to improvements in its structure.
The changes were implemented when Koert Tulleners took over as head of UK for Otto at the start of September, replacing outgoing chief executive Mike Hancox.
Hancox’s departure came as part of a larger business review dubbed “project turnaround”. As part of the strategy, Otto UK’s distribution arm, Parcelnet, is now run separately to Otto UK’s home shopping businesses.
The home shopping sector has been hit by a deluge of job losses in recent months with about 400 jobs axed at Shop Direct Group’s call centre. The company’s aim to increase the focus on its online operations also affected about 70 head office jobs.
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