Zalando to cut 350 million euros in costs

Zalando is cutting 350 million euros ($380 million) of costs to help it get through the new coronavirus crisis without needing layoffs, the German online fashion retailer said on Thursday.

A spokeswoman confirmed the figure for cuts that was first reported by Business Insider magazine.

Zalando said last week it was trimming spending and investment as coronavirus lockdowns hit its sales and profitability, while it would speed up an initiative to help currently closed stores to sell online.

On Thursday, a Zalando spokeswoman said the company had launched a savings plan involving cuts in marketing, overheads and capital expenditure, without giving a figure.

“These measures will not only put Zalando into a strong position to accelerate growth after the crisis, with the current savings plan we aim to avoid layoffs,” she said.

British rival ASOS Plc said on Tuesday it was raising equity and extending debt facilities to shore up its finances in case of a prolonged business downturn from the coronavirus pandemic.