MONITORING DESK
COPENHAGEN: Swedish fashion giant H&M on Wednesday announced laying off 1,500 employees in an attempt to cut costs, reported Reuters.
The move is part of a plan launched in September to save 2 billion Swedish crowns per year. The program is estimated to result in a restructuring charge of just over 800 million krona ($75.8 million) in the fourth quarter of 2022, said the firm.
Reasons behind fashion retailer employee lay-off
The downsizing by the world’s No.2 ranked fashion retailer comes amid rising inflation as well as the ongoing Ukraine war which impacted consumer spending and pressed firms across Europe and the United States to go for monetary savings.
H&M CEO Helena Helmersson said that the newly initiated cost and efficiency program involves reviewing the organization. She said the company was very mindful of the fact that the move would affect the employees, adding that the firm would support the sacked workers in finding the best possible solution for their next step.
