H&M plans round of layoffs in the UK

H&M has informed approximately 250 British office employees of an impending reorganization that could lead to job losses. The restructuring follows earlier measures in the Netherlands, Belgium, and Spain, where hundreds of jobs have already been lost.

Exact number not yet clear

The fashion company emphasizes that the figure of 250 employees refers only to those who received the notification, not to the number of positions that may be eliminated. According to a document reviewed by Retail Gazette, the office on London’s Oxford Street would be hardest hit, with up to 40 layoffs, but jobs would also be cut at the offices on Regent Street, in Stratford City, Manchester, Cardiff, Glasgow, and Birmingham.

The layoffs are reportedly due to overlapping responsibilities and the fact that decision-making is too far removed from the customer, and thus not related to the company’s recent financial results. The half-year results published by the H&M Group on June 25 showed that profits rose while revenue fell, indicating a greater emphasis on margin discipline than on volume growth.

This is not the first round of layoffs at H&M this year: on June 1, 250 jobs were cut at the European customer service center in the Netherlands; in Ghlin, Belgium, the closure of a distribution center resulted in the loss of 440 jobs; and the retailer also eliminated nearly 100 office jobs in Madrid and Barcelona.