Berlin Brands Group lays off almost 100 employees

The company is feeling the effects of the decline in e-commerce growth. The company is now looking to cut staff.

Online retail flourished during the coronavirus pandemic. Accordingly, the business of so-called store buyers, i.e. investors who bought small brands on Amazon in order to merge them into larger brands, also went well. This market now appears to be weakening. The Berlin Brands Group (BBG) is also feeling the consequences of this. It is laying off around ten percent of its employees, which equates to around 100 people.

The redundancies will mainly affect employees in Germany. "We are experiencing a deep break in the market. Until now, the industry's business model has often been exclusively geared towards the continued growth of the acquired brands," Peter Chaljawski, founder of BBG, told the Handelsblatt. This upward trend has been clouded by increased prices, among other things. "Until now, our priority was clearly aggressive growth, now the focus is on securing profitability," says Chaljawski.

BBG is now turning over every stone to reduce costs. Last year, the company first raised 240 million dollars in January and then 700 million dollars in September. According to market estimates, BBG generated a turnover of more than 400 million in 2021.