H&M to Slice 1500 Jobs in Restructuring Effort

H&M Group (Stockholm) says a previously disclosed global program to reduce costs and improve efficiency is expected to result in a restructuring charge of roughly $75 million in its fourth quarter of 2022. A major part of that effort involves reducing its current staff of about 155,000 by 1500.

In addition, the fashion retailer estimates this effort will result in annual savings of around $190 million, which it says is expected to “become visible” in the second half of 2023.

“The cost and efficiency program that we have initiated involves reviewing our organization 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,” CEO Helena Helmersson says in a news release.

H&M, which first announced plans to make cuts in September, noted it was required to disclose information on the specific size of the charge and expected cost savings under EU Market Abuse Regulation No. 596/2014.