Corona crisis: Bestseller cuts 750 jobs, H&M fears thousands lost

Danish retailer Bestseller is laying off 750 people, Swedish giant H&M fears it will have to cut tens of thousands of jobs due to the coronavirus crisis.

“Expect the worst”

The Danish owner of Vero Moda, Only and Jack&Jones has already put almost half of its employees (2,400 out of 4,400) in a system of state-sponsored temporary unemployment, but now says that 750 people – mostly in its Danish headquarters – will lose their jobs permanently. The retailer points to problems with its liquidity and huge turnover drops.

CEO Anders Holch Povlsen regrets the measures, saying that the government is a great help that enabled him to at least limit the number of job cuts. The next four to eight weeks will show whether more savings will be necessary, he admits, but he is rather pessimistic about the duration of the crisis. “We have no other option than to expect the worst”, he concluded.

Sweden’s H&M fears that it will have to take draconic measures, citing a possible job loss of tens of thousands of employees. Currently, the chain has closed 3,441 of its 5,062 stores worldwide and is looking how it can stay afloat. According to Dutch newspaper De Telegraaf, the first step would be letting go tens of thousands of temporary employees, but if the crisis continues, the damage could also be done to full-time employees.