H&M will lay off 1,500 employees

With Christmas just under a month away, H&M has announced 1,500 new layoffs. The plan is actually part of the cost-cutting program announced by the Swedish giant last September, aimed at reducing surplus staff and simplifying internal organization. The first results of the program should be seen in the second half of 2023, with the layoffs leading to total savings of SEK 2 billion a year, or just over 183 million euros. Brand representatives stressed, however, that «will support our colleagues in finding the best possible solution for their next step».

In fact, H&M has also been affected by the economic crisis due to the cutback of its operations in Russia, which has driven up both raw material and transportation prices. These increases mixed with the lowering of sales and the strengthening of the dollar have driven down the profitability of the group, which is now, therefore, looking for a new balance and, above all, a more efficient model. In the quarter ended last August, in fact, H&M's profits had fallen from 6.27 billion kronor in 2021 in the same period to 902 million kronor. The company, in any case, has not specified whether the cuts will be applied to Swedish staff or will be extended to the rest of the world.