H&M to Fire 1,500 Employees as It Seeks to Cut Costs

H&M to Fire 1,500 Employees as It Seeks to Cut Costs

H&M to Fire 1,500 Employees as It Seeks to Cut Costs
H&M to Fire 1,500 Employees as It Seeks to Cut Costs
Retail Bum

Retail Bum

Retail Bum

Retail Bum

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Swedish retail giant H&M plans to cut 1,500 jobs in its bid to cut costs and drive efficiency across its business.

The restructuring effort, in addition to the reduction of other administrative and overhead costs, is expected to generate more than $75 million in saving in the fourth quarter and nearly $190 million annually.

“The cost and efficiency program that we have initiated involves reviewing our organization 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,” Helmersson added.

The announcement comes weeks after it was reported that H&M had closed one in five of its stores in the U.K. in an effort to reduce costs.

The company rolled out its cost-saving program in September this year to cope with the loss in revenue that came from its exit from Russia and soaring commodity costs.

In the third quarter, the company’s net profit declined to $50.3 million, a steep decline from the $445 million it had observed a year ago, according to FashionUnited.

During the same time, the retailer’s net sales reportedly increased by 3% to $5.45 billion.

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