More Than 1,000 Employees After the Destruction of the Rozetka Warehouse: Who Will Be Transferred and Who Will Be Laid Off
13 August 05:52
Ukrainian online retailer Rozetka has begun streamlining its workforce following Russian attacks on its warehouse complex in Brovary. The cuts will affect certain departments, though some employees will be offered jobs at the company’s other facilities. This was announced by Rozetka co-founder Iryna Chechotkina, according to "Komersant Ukrainian"
Who Will Be Laid Off at Rozetka
The company has not yet disclosed the exact number of employees who will lose their jobs. According to Chechotkina, the layoffs will affect some departments as part of a broader workforce optimization effort.
More than 1,000 people worked at Rozetka’s warehouse complex in Brovary. The company is trying to transfer most employees to other warehouses and provide them with new jobs.
However, the company will not be able to rehire all employees from the closed complex.
“It won’t be possible to offer everyone alternative jobs in this situation. Circumstances have proven to be beyond our control,” explained Rozetka’s co-founder.
It is not yet clear exactly which departments will be affected by the layoffs or how many positions will be eliminated.
Rozetka Is Changing Its Business Model
After losing its largest distribution center, the company decided to accelerate the transformation it had previously planned to carry out gradually.
The updated model calls for:
- a reduction in the share of Rozetka’s own sales;
- more active development of the marketplace;
- an increase in the share of products from third-party sellers;
- a review of logistics processes;
- optimization of certain divisions and costs.
The marketplace operates as a platform where various sellers independently list their products, and the platform earns a commission and provides related services. For Rozetka, this model means less need to purchase large batches of products with its own funds and store them in its warehouses.
What Happened to Rozetka’s Warehouse in Brovary
Rozetka’s largest automated distribution center in Brovary was destroyed during a Russian attack on August 5. According to the company, three ballistic missiles struck the complex.
The warehouse opened in 2017. It processed over 100,000 orders per day and was one of the key elements of the retailer’s logistics system.
The destroyed complex cannot be rebuilt. Its value was estimated at approximately $70 million, and the value of goods lost as a result of the attack is estimated in the billions of hryvnias.
Despite the destruction of its main warehouse, the company resumed order processing within two hours. The workload was redistributed among other logistics facilities.
A bomb shelter saved 92 employees
During the missile strike on August 5, 92 employees were on the warehouse complex’s premises. They managed to take shelter in a bomb shelter that the company had built in 2022.
According to Iryna Chechotkina, the shelter withstood the ballistic strike and supplied people with oxygen while the fire raged around them. All 92 employees emerged unharmed.
However, during a previous attack by a Russian drone, six company employees were injured. They are currently completing their treatment.
Is the government helping Rozetka?
Chechotkina refuted reports that the government is allegedly helping the company resume operations. She said that in its 21 years of operation, Rozetka has neither received nor requested government funding.
Following the destruction of the warehouse, the company’s co-founder proposed introducing support measures for all Ukrainian businesses that have suffered significant losses as a result of Russian attacks. One possible mechanism could be deferring tax payments for the duration of business recovery.
The issue of compensation remains particularly acute because insurance companies are not prepared to fully cover war risks for businesses with significant assets.
Rozetka is currently continuing to operate thanks to its other warehouses, stores, and logistics centers. However, the loss of its largest complex has forced the company to simultaneously restructure its logistics, change its sales model, and lay off some of its staff.
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