Swedish fashion retailer H&M will cut some 1 500 jobs as part of its cost-cutting drive and book a restructuring charge of 800 million Swedish crowns ($75.80 million) in the fourth quarter, it said on Wednesday.
In September, H&M, the world’s No. 2 fashion retailer, launched a plan to save 2 billion Swedish crowns per year.
“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,” Chief Executive Helena Helmersson said in a statement.
“We will support our colleagues in finding the best possible solution for their next step,” she added.
Shutting of stores
In 2020, H&M said it planned to close hundreds of stores 2021 as the coronavirus crisis drove more shoppers online, after reporting a smaller than expected drop in third-quarter profit.
H&M, which over decades expanded its network of shops around the world, aimed to cut their number by a net 250 in 2021, representing 5% of its current network.
H&M was shutting more stores and opening fewer over the past couple of years as it adapts to the online shift that is driving more competition. The retailer said earlier its net number of stores would decline already in 2020.
