H&M, a well-known Swedish clothing retailer, announced on Wednesday that it will eliminate 1,500 employees across its global operations as part of a cost-cutting push and will record a restructuring charge of 800 million Swedish crowns (around RM341 million).
In September, the company launched a plan to save 2 billion Swedish crowns annually (around RM853 million). This was caused by the 30% fall in profits towards the end of August, due in part to the company’s decision to scale back operations in Russia in light of the war in Ukraine.
Chief Executive of H&M, Helena Helmersson said in a statement: “The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this.”
H&M is expected to reveal further tightening on sales and profits this month.