H&M to cut 1,500 jobs in restructuring programme
The H&M group has announced that it will let 1,500 positions go as part of what it calls a ‘restructuring charge’.
This comes after news that H&M closed one in five of its stores across the UK.
The Swedish retail group, who also own COS, Weekday, and Monki, as well as the H&M HOME brand, said the plans were part of an initiative to reduce costs and improve efficiency in the business.
H&M estimates that the programme, which also relates to administrative and overhead costs, will provide annual savings of SEK 2 billion (Swedish Krona, about £158.2m), expected to become visible in the second half of 2023.
The retail group expects that the programme will result in a restructuring charge of just over SEK 800m (£63.2m) in the fourth quarter of 2022.
Helena Helmersson, CEO of the H&M group, said: “The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this. We will support our colleagues in finding the best possible solution for their next step.”