H&M considering cutting thousands of jobs due to coronavirus
H&M has confirmed it is mulling the possibility of laying off thousands of workers, as the business suffers revenue setbacks amid the global health crisis.
As its stores are shuttered due to Government mandates aimed at reducing the spread of coronavirus, H&M said that it was reviewing its operational costs, including taking “several measures” in the areas of stock purchasing, investments, building rents and staff costs.
H&M has temporarily shut down 3,441 of its 5,062 locations, temporarily closing all stores in the US, Germany, and the UK.
H&M said in a statement that it is considering "the potential need to terminate employment" because of the scope of the COVID-19's impact.
H&M CEO, Helena Helmersson, said: “We are doing everything in our power in the H&M group to manage the situation related to the coronavirus. My hope is that we will be able to get operations up and running again as soon as possible.
“This is an extraordinary situation in which we are forced to make difficult decisions, but with every challenge there are also opportunities, and I am convinced that we as a company, once we have made it through this, will continue to stand strong.”
The company is most likely planning to provide more information when it releases its next quarterly financial report on 3 April 2020.
Yesterday, H&M announced it was opening up its global supply chain, including its widespread purchasing operations and logistics capabilities, to produce and deliver personal protective equipment (PPE) to hospitals worldwide during the COVID-19 Coronavirus pandemic.