Amid layoffs spanning across industries, global fashion brand H&M on Wednesday said it will cut around 1,500 positions globally in a bid to reduce costs and improve efficiency, according to reports.
The Sweden-based company, which employs roughly 155,000 people, said a restructuring charge of 800 million kronor ($76 million) will be booked in the last three months of the year.
The staff reduction is estimated to provide annual savings of about 2 billion kronor ($190 million), it said.
“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,” news agency Reuters quoted Chief Executive Helena Helmersson as saying.
“We will support our colleagues in finding the best possible solution for their next step,” she added.
The benefits would start to kick in from the second half of next year, H&M said.
All the big names in the tech sector have axed employees in masses, impacting a significant percentage of their workforce. Meta, Twitter, Amazon, Snap etc., companies which were once though of as a safe bet by employees are now nothing less than a nightmare as they undergo a massive laying off spree this year.
For the first time in its 18-year history, Facebook parent Meta last week announced that it would cut over 11,000 jobs, affecting 13 per cent of its overall workforce. Prior to that, it was Twitter that fired 50 per cent of its employees after billionaire Elon Musk’s takeover. And now, the latest to go on a sacking spree is e-commerce giant Amazon, which also became the first public company ever to lose over $1 trillion in value on Wednesday.
Billionaire Elon Musk, just a few days after completing the acquisition of Twitter late last month, sacked around 3,700 Twitter employees, or 50 per cent of the workforce.
