The low-cost fashion chain claims the decision to reduce staff aimed at decreasing costs and improving the company´s efficiency
The Swedish fashion brand H&M has recently announced major job cuts in its workforce scheduled to take place across the world. According to a report in Associated Press on Wednesday, November 30, the brand has announced it will be reducing its global workforce by over 1500 positions. The company states that the decision to downsize staff is with an aim at reducing costs and improving its efficiency.
H&M said in the report, the reduction of staff will provide the company with a saving of about 2 billion kronor ($190 million) annually. The company further said the restructuring charges of 800 million kronor ($76 million) will be booked in the last three months of the year.
In a statement discussing the job cuts, Helena Helmersson, H&M CEO, said she was “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”, the report said.
Founded in 1947, H&M has over 4,664 stores in 77 markets and has 57 online markets. The report also added, the Swedish group also owns brans like OS, Monki, Weekday, Cheap Monday, & Other Stories, H&M Home, ARKET and Afound.
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