The Munich-based e-commerce company windeln.de aims to reach break-even by the beginning of next year — and continues to rely on layoffs and cost-cutting to achieve this.
137 employees are expected to leave windeln.de this year. This represents a reduction of more than a third of all positions. windeln.de aims to save four to five million euros in sales and administrative costs. Furthermore, margins are to be increased by optimizing its product range. The company aims to achieve profitability by early 2019.
Windeln.de has been in restructuring mode for some time: In 2016, 100 jobs were already lost. Last year the company announcedthat Amazon manager Matthias Peuckert will replace founders and co-CEOs Konstantin Urban and Alexander Brand at the top of the company.
Losses despite increasing sales
The online shop for children's supplies has expanded significantly internationally in recent years. The company now plans to focus its activities more strongly on German-speaking countries, Spain, Portugal, France, and China. As part of this effort, windeln.de is considering a sale of Feedo, which operates in the Czech Republic, Slovakia, and Poland. The Italian branch, including its offices and warehouse, is to be closed.
For 2017, the company is reporting a preliminary adjusted EBIT of between minus 26 and minus 24 million euros. Sales increased by 8 to 10 percent year-on-year to between 211 and 213 million euros.
