H&M announced this Wednesday that it will cut 1,500 jobs due to the application of a cost-cutting plan introduced two months ago and efficiency gains following a drop in profits while closing a business in Russia.
The program, which aims to save 2,000 million SEK (about 183 million euros) per year from the second half of 2023, will cost about 800 million SEK (73 million euros) in restructuring costs to be taken into account in the fourth quarter, says in the message. The Swedish fashion chain said in a statement that the job cuts are also due to the closure of its operations in Russia due to the invasion of Ukraine.
“The cost-cutting and efficiency-improvement program we have launched includes a restructuring of the organization,” said Helena Helmersson, executive president of the multinational corporation.
He continued, “We understand that some colleagues will be affected. We will support them in finding the best possible solution for the next step.”
With over 100,000 employees, the Swedish group has 4,664 stores in 77 countries and is also present in 57 online marketplaces.
H&M also mentions that the drop in profits was due to the closure of activities in Russia due to the military intervention in Ukraine, which cost it 2.104 million Swedish kronor (193 million euros), as well as factors such as rising prices for raw materials. materials raw materials, energy costs, supplies and transportation, according to a financial report released two months ago.
Author: Portuguese
Source: CM Jornal
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