H&M to lay off 1,500 jobs

Swedish clothing company H&M announced that it will lay off 1,500 jobs as part of cost-cutting measures, and will incur restructuring costs of SEK 800 million, or approximately $75.80 million, in the fourth quarter.

H&M, the world’s second-largest clothing retailer, began implementing a plan to save SEK 2 billion a year in September.

HIGH INFLATION REDUCED CONSUMPTION

In Europe, H&M’s main market, the war against Ukraine, record energy prices and skyrocketing inflation put pressure on consumer confidence and reduced consumption.

While the Swedish group reported a SEK 689 million pre-tax profit in the third quarter, its profit fell sharply from SEK 6.09 billion in the same period last year.

Analysts who participated in the Refinitiv survey expected the company to announce a profit of 2.98 billion kroner. (Reuters)