Emma initiates job cuts, reducing its workforce by 20%.
strugglesome days hit the mattress brand Emma, based in Frankfurt. As per the company leadership, approximately 200 out of its total 1120 employees need to part ways - a tough decision forced by unfavorable market situations, suggests a report from "Wirtschaftswoche." Emma, a mattress supplier, has been facing difficulties with its distributor for a while.
Emma's CEO, Dennis Schmoltz, explained to "Wirtschaftswoche" that the turbulent e-commerce sector and the furniture industry have been a source of instability for quite some time. Citing these factors, they've put a halt to growth for the entire year, necessitating workforce reductions.
Schmoltz added that Emma had launched new systems intended to enhance operational efficiency and financial management during their initial expansion plan for 2024. However, the transition to these systems turned out to be more complex than anticipated, causing operational hiccups.
Since the last quarter of 2023, reports "Wirtschaftswoche," Emma's customers have been encountering issues like extended wait times for their orders, difficulty in reaching customer service, and unresponsive logistics companies when handling returns.
Customers can return an Emma mattress purchased online and delivered at home if they're not happy with it within 100 days, according to Emma's return policy. In competitive tests, Emma battles it out with its rival Bett1 for the leading position.
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The furniture industry, being one of the sectors affected by the turbulent e-commerce market, has posed challenges for Emma as a mattress supplier. Due to the instability caused by the furniture industry and e-commerce sector, Emma has decided to pause its growth plans for the year, leading to job cuts in the furniture industry.
