// H&M to slash 1,500 jobs to reduce costs in the business
// The cost-cutting drive comes after the group posted a significant drop in profits in September
H&M will cut 1,500 jobs as as it looks to reduce costs and further improve efficiency in the business.
The cost-cutting drive comes after the fashion giant, which owns H&M, Monki, Weekday, and Arket, reported a significant drop in profits in September.
Profits hit £43 million in the third quarter – down 89% from last year’s period. The company said it would be introducing cost-cutting measures that will result in savings of £163 million.
The measures relate to administrative and overhead costs, and also entail reducing the workforce by around 1,500 positions.
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The group said the programme is expected to result in a restructuring charge of just over £63 million in the fourth quarter of 2022.
“The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this,” H&M chief executive, Helena Helmersson said.
“We will support our colleagues in finding the best possible solution for their next step.”
Last week, it was revealed that H&M has shuttered one in five of its stores across the UK. The fashion retailer closed 56 stores since its peak in the months before the pandemic struck.
This leaves H&M with 192 outlets in the UK, as many town centres struggle to attract footfall.
H&M operates in 75 countries and employs 155,000 staff around the world. The closures are part of a wider strategy to cut costs across the group.
