H&M to cut 1,500 jobs to reduce costs

H&M has initiated its Restructuring Global Cost and Efficiency Programme to reduce costs.

The programme has been actioned to ‘reduce costs and further improve efficiency in the business'. The programme relates to administrative and overhead costs and includes reducing staff by approximately 1,500.

It is estimated that this will provide annual savings of around £158.3 million (SEK 2 billion), which are expected to become visible in the second half of 2023. The programme will result in an expected restructuring charge of just over £63.3 million (SEK 800 million) in Q4 2022.

Helena Helmersson, CEO of H&M, commented: “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. We will support our colleagues in finding the best possible solution for their next step.”

This news follows the company's revamp of its Regent Street and Merry Hill shopping centre stores in an effort to deliver an "enhanced retail experience" for consumers.