The specialist retailer forfast fashion” H&M will cut around 1,500 jobs as part of a restructuring plan.
The goal is cost reduction to offset a slowdown in sales and profits.
According to H&Mthe restructuring will require about 800 million Swedish crowns, about 76 million dollars in the fourth fiscal quarter.
According to what was reported this Wednesday, November 30, the idea is to lay off some 1,500 workers, about whom no further details were given, so it is not clear which countries it will affect and if it will involve employees from all the markets in which it is present.
Two months ago, H&M, the second specialist retailer in “fast fashion” of the world behind Zara (Inditex), had launched a plan to save SEK 2 billion a yeararound 190 million dollars.
Mass layoffs at H&M
Between the argumentsH&M accounted for rising inflation, which means it must raise product prices, and without growth in the same line of sales volume, profits fall.
People buy less because clothing has become a second-order expense amid falling real wages.
Consumers prioritize buying groceries and paying energy bills.
The 1,500 workers represent a small portion of the total number of employees, estimated at 150,000 worldwide.
“The cost and efficiency program that has been launched involves reviewing the company,” says the statement published by H&M, signed by CEO Helena Herlmersson.
“We are very aware that there will be employees affected by the plan”he added.
He also said that H&M will “support” employees to find “the best possible solution in their next step.”
According to what was reported, the restructuring would begin to have an effect on the company’s finances as of the third quarter of 2023.
layoffs around the world
H&M is not the first (nor will it be the last) company to apply massive layoffs in 2022 and 2023.
Within days of taking over Elon Musk as the new head of Twitter on October 28, the social network applied massive layoffs around the world.
It affected some 3,700 employees, almost half of the workforce of more than 7,500.
A few weeks later, another big player from the networks joined: Meta Platforms.
The company that owns Instagram, Facebook, WhatsApp and Oculus, among other platforms, announced the forced departure of 11,000 employees worldwide, 13 percent of the total.
While not officially confirmed, Amazon also plans to lay off around 10,000 employees who work in corporate and technology roles; and Tencent Holding is looking to divest thousands of workers from its video streaming, gaming and cloud business units.
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