Economy

H&M to cut 1,500 jobs worldwide as it struggles with rising costs

Swedish fashion giant H&M is cutting 1,500 jobs worldwide as it struggles with rising costs

Fashion giant H&M is going to cut 1,500 jobs worldwide because of the rising cost of living.

The Swedish company said it is reducing costs and further improving efficiency. The aim is to save 2 billion Swedish kronor (£158 million) every year from the second half of 2023.

The cuts are expected to cost £63.3 million this quarter. The retailer, which also owns the Cos and Monki brands, employs approximately 155,000 people in 4,700 stores worldwide.

Cuts: H&M says it wants to save 2 billion Swedish kronor (£158 million) every year from second half of 2023

Chief executive Helena Helmersson said: ‘We will support our colleagues in finding the best possible solution for their next step.’

Susannah Streeter, an analyst at Hargreaves Lansdown, said: ‘Leaving lights and heating on in large stores is becoming increasingly prohibitively expensive.

“With shoppers becoming impressively price sensitive, retailers are finding it harder to pass on increases in input costs.

Shoppers are showing signs of trading in and hunting for bargains, so H&M is under pressure to compete with chains perceived to offer greater value.”

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Jacky

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