Zalando, Europe's largest online fashion retailer, is set to shut down its distribution center in Erfurt by the end of September 2026, impacting approximately 2,700 employees. The closure follows Zalando’s acquisition of About You last year, prompting a strategic overhaul of its logistics network to strengthen its position in the European market. The company plans to retain 14 logistics centers across seven countries, including major sites in Gießen, Lahr, and Mönchengladbach, while restructuring its international logistics contracts, including non-renewal of agreements with external operators abroad. Zalando aims to optimize its logistics capacity within its combined network to enhance efficiency and speed. The Erfurt site, established in 2012 and the only large in-house logistics facility in East Germany, will cease operations, with negotiations underway with the works council regarding social plans and potential employee transfers, including offers to relocate to other sites such as Gießen. The company emphasizes that the decision is part of a necessary transformation to adapt to market opportunities and to ensure future competitiveness. Zalando's CEO, David Schröder, stated that the company would support affected employees through financial assistance and transfer options, aiming for as many as possible to find alternative employment. This move is part of Zalando’s broader strategy to consolidate its logistics infrastructure, utilizing its Zalando E-Commerce Operating System (Zeos) and acquiring additional software like Scayle from About You to enhance operational efficiency. The closure is also influenced by legal obligations under EU law requiring strict compliance for online platforms. Overall, the restructuring reflects Zalando’s effort to adapt to changing market dynamics and maintain its leadership position in the online fashion sector.