Ahlers to cut 80 staff positions to reduce cost
23 Sep 2020
Ahlers Ag has announced that the company will reduce around 80 employees, thereof about 65 in Germany, across all areas and hierarchical levels. The company said in a statement that in addition to a few individual measures for reorganization, the measures particularly include the relocation of logistics services and the Pionier workwear model department from Herford, Germany to Poland.
The company added that travel restrictions and the compulsory wearing of face masks are hampering fashion sales, leading to sharply declining sales in retail, which cannot be offset even by the increase in e-commerce business. As a result, the company does not expect sales level of 2019 will not be attainable this year or next.
As a result of reduction in headcount, the company further said, personnel costs should continue to decline significantly until the end of the fiscal year 2022 and, together with the expected increase in sales revenues from 2022, contribute to a significant improvement in earnings and return to profitability.