Dutch e-commerce platform Bol.com plans to cut 225 million euros in costs. As a result, 300 jobs are disappearing, equivalent to one tenth of all jobs.
Most jobs gone already
E-commerce is a sector that finds itself struggling after the phenomenal growth during the pandemic. Webshops are now struggling with declining profitability (like all retailers) and need to watch their costs. Ahold Delhaize subsidiary Bol.com will therefore have to cut costs over the next three years.
The staff will feel the consequences: as many as 10 % of all jobs will be lost, amounting to 300 jobs. Instead of outright redundancies, the Dutch online platform is opting mainly for non-extension of contracts. About 100 employees will not have their temporary contracts extended.
Most of the remaining 200 jobs have already been cut, Dutch news medium Financieele Dagblad reports. Vacancies have not been filled in recent months and Bol.com has also reduced the number of external staff. Employees who are allowed to stay, will lose their performance bonus this year. Another bonus, based on internal targets, will remain.
Logistics and advertising are safe
As the staff cost reduction is only budgeted for 15 % of the amount to be saved, other measures will still have to be taken elsewhere. Bol.com wants to make substantial savings (10 % of the 225 million) in the cloud services division, while better conditions are also demanded from suppliers. Only the advertising division and logistics for market vendors will not suffer cuts, as these services are ‘strategically important’ (in other words, very lucrative).
Growth has stalled, CEO Margaret Versteden explains: sales will remain stuck at last year’s level this year, and this could also be the case in 2023. Consumers are spending less because of the high inflation and energy prices – even though this stagnation still represents a big jump from pre-pandemic levels.