“a program cost And the performance we’ve initiated includes a review of our organization and we’re well aware that this will impact colleagues. We will support our colleagues in finding the best possible solution.” H&M CEO Helena Helmerson explained in a press release.
The clothing giant announced layoffs. The reason is inflation and the war in Ukraine
H&M Group has launched a global program to reduce costs and further improve business efficiency. It is related to administrative and overhead costs, and it is also assumed to reduce employment by about 1,500 full-time employees.
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The world’s second largest apparel company estimates that its decisions will generate annual savings of about SEK 2 billion (about US$190 million) per year. The scheme is expected to generate restructuring fees of just over SEK 800 million in the fourth quarter of 2022.
The H&M Group employs approximately 155,000 people worldwide. employees. “The reason for the reductions is increasing inflation and high costs associated with the war in Ukraine, which is putting pressure on companies across Europe and the United States to save money. Reuters. H&M’s director of investor relations, Nils Vinge, explained that the layoffs will take place in Sweden.
H&M pulled out of Russia. The store in Moscow is now closed
after the start of the invasion Russia For Ukraine, the network Clothes H&M has announced its withdrawal from Russian Market. in Walk In 2022, it restricted its operations in this country, and in July, the company’s president, Helena Helmerson, announced that, given the current situation, the company “does not see the possibility of continuing to operate in Russia.”
On Wednesday, Russians were able to visit the H&M flagship store in Moscow for the last time – the outlet was closed after huge sales that lasted nearly four months, according to reports. Reuters. The company estimated the cost of withdrawing from the Russian market at about $200 million.
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