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The
move by the world's No.2 fashion retailer comes as surging cost
of living and the blow from the Ukraine war hurt consumer
spending and pressured companies across Europe and the United
States to save cash.
The cuts by the company, which employs roughly 155,000 people,
are part of a plan launched in September to save 2 billion
Swedish crowns per year.
The company said the savings would start to kick in from the
second half of next year, while it will take a restructuring
charge of 800 million Swedish crowns ($75.80 million) in the
fourth quarter.
"We are in a big transition and the whole retail industry is
facing a lot of challenges," H&M's investor relations head Nils
Vinge told Reuters, pointing to headwinds from the pandemic, the
Ukraine war and rising input, freight and energy costs.
"It's very clear that when consumers have paid for their food
... energy, gas, and so on there is less to spend. So what is
obvious is that demand for value for money increases".
The lion's part of the cuts would be made in Sweden, Vinge said.
While high-street retailers are struggling due to stiff
competition from online-only brands, British fashion retailer
Primark has recently announced plans to add 1,800 jobs in Spain
and Britain as it benefits from shoppers trading down in price.
($1 = 10.5546 Swedish crowns)
(Reporting by Stine Jacobsen, additional reporting by Terje
Solsvik in Oslo, editing by Louise Heavens and Arun Koyyur)
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