H&M announced this Wednesday that it will cut 1,500 jobs to implement its cost-cutting plan presented two months ago and to increase efficiency, following slumping profits when the company closed in Russia.
The program, which aims to save SEK 2,000 million (approximately €183 million) annually from the second half of 2023, will cost approximately SEK 800 million (€73 million) in restructuring costs, which will be recognized in the fourth quarter. the Swedish fashion chain in a statement, pointing out that the job cuts are also due to the closure of its operation in Russia due to the invasion of Ukraine.
“The cost-cutting and efficiency-enhancing program we have started includes restructuring the organization”said the multinational’s executive president, Helena Helmersson.
And continued: “We are aware that some colleagues are affected by this. We will support them in finding the best possible solution for the next step.”
The Swedish group, which has more than 100,000 employees, has 4,664 stores in 77 countries and is also present in 57 online markets.
H&M also mentions that the drop in profits was due to the closure of operations in Russia due to the military intervention in Ukraine, which cost it SEK 2,104 million (€193 million), and factors such as the rise in the price of raw materials raw materials, energy costs, supplies and transportation, according to financial statements released two months ago.
Source: DN
