30 Million Euro Gap Derails Zalando Social Plan, Adding to German Job Cut Pressure
20.06.2026 - 23:51:11 | boerse-global.de
Failed talks over severance terms for workers at Zalando's Erfurt logistics centre have thrown the future of 2,000 jobs into doubt. Negotiations between management and the works council broke down on Saturday after the two sides remained roughly 70 million euros apart on the total payout package.
The company had put 30 million euros on the table. Union representatives countered with a demand for around 100 million euros. With no middle ground in sight, the works council walked away from the bargaining table.
At least one part of the process has made headway. Sources in industry circles say that discussions on a balance-of-interests agreement — what German labour law calls an Interessenausgleich — already produced “good results.” That question now moves to a mediation panel, officially called an Einigungsstelle, to be chaired by a former labour court judge.
The first mediation session is scheduled for June 23, with a final decision targeted by July 9. Management insists the closure date remains fixed: the Erfurt site will shut down on September 30, 2026.
Zalando is far from the only company reshaping its German operations. Porsche, the luxury sports-car maker, is working on a fresh round of cost cutting. CEO Michael Leiters aims to conclude those negotiations by July. The urgency stems from a net profit collapse of more than 90 percent in 2025. Porsche now plans to cap annual production below 280,000 vehicles. That follows an earlier agreement to eliminate 3,900 positions last year.
Textile machinery builder Trützschler is also shutting down its Mönchengladbach production plant, eliminating several hundred jobs. A social plan is currently being negotiated there.
Additional strain comes from the leisure-vehicle sector. LMC Caravan, a manufacturer of caravans and motorhomes, is laying off more than 100 staff. The company cites a double-digit monthly drop in new registrations as the trigger. The job cuts are staggered: 88 employees will leave by July 31, and a further 18 by January 31, 2027. The company has offered affected workers the option of transferring to a job-transition agency known as a Transfergesellschaft.
