Zalando cuts marketing budget rather than jobs
European fashion giant Zalando boss has said the company is turning to marketing cuts rather than job cuts as the sector grapples with a consumer spending slowdown.
In an interview with the Financial Times, Robert Gentz the co-founder said that the clothing giant would not be axing staff like its retail rivals.
While he said the firm has been “more cautious in hiring”, he told the FT: “Our plan is to keep employment by the end of this year steady.”
The businessman added that Zalando, which has a European customer base of around 49 million, has been able to offset many of the price rises by focusing on profitability and scaling back marketing spend.
He told the paper that the company has also reduced free shipping offers to limit loss making small orders.
It comes as the pandemic boom of online shopping continues to fade for many retail giants and more and more customers are forced to limit spending.
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