Aldi Süd to cut costs: a wave of layoffs and a smaller product range

Aldi Süd is planning major cost-cutting measures. The German retailer intends to cut more than a thousand jobs over the next two years and will also reduce its product range to lower operating costs.

Focus on core tasks

According to the Westdeutsche Allgemeine Zeitung, Aldi Süd plans to cut more than a thousand jobs at its headquarters and IT department in Mülheim. The company aims to streamline its central organization and focus on core activities. An increasing number of tasks in procurement, human resources, and accounting are being outsourced. Support functions are also being shifted to Salzburg, Austria.

At the same time, it has been reported that the discount chain plans to reduce its product range, following a period in which the selection was systematically expanded to include fresh products and regional specialties. Several premium brands are disappearing from the shelves, and private labels are also being streamlined. By standardizing the product range, the retailer aims to reduce operational costs. After all, too many variants of similar items drive up costs. A reduction in the range leads to higher turnover per SKU. The retailer has declined to comment on these developments.