Arbitration imposes social plan for Zalando Erfurt site, no transfer company
After months of deadlock, an arbitration board has imposed a social plan for the 2,100 employees of Zalando's Erfurt logistics center, clearing the way for the site's closure at the end of September.
Background
In January 2026, Zalando announced the closure of its logistics center in Erfurt, Thuringia, a site that had been central to the online fashion retailer's growth. The decision sparked protests from the works council, trade unions, employees, and criticism from the Thuringian state government. Workers piled discarded work clothes outside the facility, formed a chain of work jackets around the site, and collected signatures in opposition. Despite the public pressure, Zalando held firm to its plan to shut the site by the end of September.
- Zalando announces closure of Erfurt logistics center
- Arbitration board delivers binding social plan
- Scheduled closure of the Erfurt site
Arbitration ruling
After months of deadlocked negotiations, the Erfurt labor court appointed an arbitration board (Einigungsstelle), which has now delivered a binding social plan. The plan primarily governs severance payments for the roughly 2,100 affected employees. However, the works council failed to secure funding for a transfer company that would have helped workers transition to new jobs. Zalando refused to provide additional resources, and the arbitration board could not legally compel such a measure. The works council described the company's stance as "shameful."
Even though an economically acceptable result was achieved for the workforce, an extremely bitter aftertaste remains.
Employee impact
Around 1,800 employees hold permanent contracts, while approximately 300 are on fixed-term contracts that will expire. With the social plan in place, the legal prerequisites for mass layoffs are now met. Zalando has set aside provisions of 80 million euros in its financial reports for the closure, covering severance payments and potential extra costs such as temporary workers. The company confirmed that the site will close at the end of September as planned.
Reactions
The works council thanked the public for its support throughout the dispute. Earlier, it had demanded a fair and socially just plan, pointing to Zalando's billions in investments, including the acquisition of About You, share buybacks, and sports sponsorships. The council had declared, "We will not be disposed of like garbage." The closure marks the end of a facility that played a key role in Zalando's early growth.
