H&M to cut 1,500 jobs amid cost savings programme

Swedish fashion giant H&M is to cut 1,500 jobs as part of a previously announced plan to reduce costs and improve efficiency across the business.

The cost-cutting programme, which will also see the retailer cut other administrative and overhead costs, is expected to result in a restructuring charge of just over 800 million Swedish krona (63 million pounds) in the fourth quarter.

But it is expected to save the business some 2 billion Swedish krona annually from the third quarter onwards.

Cost-cutting push

“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,” H&M Group CEO Helena Helmersson said in a statement.

“We will support our colleagues in finding the best possible solution for their next step,” she added.

The news follows a report earlier this month by The Mail on Sunday that H&M has quietly closed one in five of its UK stores in recent years to cut costs.

H&M announced the launch of a savings programme in September as its profits were hit hard by its exit from Russia following the country’s invasion of Ukraine, and amid rising costs.

Its net profit in the third quarter slumped to 531 million Swedish krona from 4.69 billion Swedish krona a year earlier.

Its net sales in the period increased 3 percent to 57.45 billion Swedish krona, but were down 4 percent in local currencies.