The fast fashion retailer announced to axe 1,500 jobs globally as a part of a restructuring programme to reduce costs after a fall in profits.  

The Sweden-based retailer said the job cuts that are a part of the ‘Global programme to reduce costs and further improve efficiency in the business.’ were set to save around two billion Swedish Krona (£160 million).   

The cuts are expected to cost the firm 800 million Swedish Krona (£63 million) this quarter.   

The Hennes & Mauritz group, which operates more than 4,600 stores in 70 countries and owns Monki, Cos and Arket as well as its core brand H&M, announced plans for job cuts after their profits fell 30% in the nine months to the end of August – partly resulting from the fall of sales in Russia due to the war in Ukraine.  

The company closed almost 200 outlets in the past year as sales moved online. In September, the company said that sales and profits in the summer were weak in many of its major markets. Job cuts are a push to reduce costs across the business due to slowing sales and rising costs for clothing retailers.  

At the time of its last financial report in September, explaining plans to make cost cuts H&M Chief executive Helena Helmersson said: “Long-term initiatives to meet customers’ ever-increasing expectations are continuing. In a situation of high inflation where household living costs are rising significantly, it is more important than ever to offer customers the best value for money.”   

“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.”  

The cuts will affect the head office and central operations worldwide, including the UK, but won’t have any impact on store staff.  

As of November last year, the firm had 107,375 employees, of which about 10% were based in Sweden. After the closure of 59 stores in the UK since 2020, the number of employees fell from around 8,000 to 6,000 according to its most recent filing with Companies House.  

“We will support our colleagues in finding the best possible solution for their next step,” said Helmersson.  

H&M isn’t the only retailer making cuts. StockX confirmed last month that it is undergoing a round of layoffs as the company is currently under the pressure of the current economy.   

The British fashion firm Joules went into administration, putting 1,600 jobs and the future of its 132 shops at risk.   

In October, FootLocker announced that it is closing a distribution centre and laying off 210 employees and Nordstorm has laid off over 200 employees in a fulfilment centre in Iowa that previously employed over 1,000 people.   

After going into administration over the summer, Missguided and I Saw it First were bought out by Sports Direct owner Frasers Group.  

Words: Aleksandra Martynow | Subbing: Lumi Leinonen