H&M Group is to cut around 1,500 jobs. The redundancies are part of the cost-cutting plan announced by the Swedish fashion group back in September.
Administrative and overhead costs
The company is not yet disclosing where exactly the redundancies will occur, but it has already said affected employees are to receive help in their search for “their next step”. The Swedish fashion giant announced a cost-cutting plan in September, to improve efficiency and especially reduce administrative and overhead costs. CEO Helena Helmersson said the organisation is being reviewed.
The programme should deliver annual savings of two billion Swedish kronor (200 million euro) from the second half of 2023. In the current fourth quarter, ending 30 November, H&M will already book a restructuring cost of just over 800 million kronor.
Recent analyses by Graydon and WPP Belgium showed that a lot of retailers are currently in the danger zone. Their reserves are depleted after at least three turbulent years and continuing to innovate is becoming difficult.