After tech layoffs impacted thousands of workers, it is now the turn of another industry. As per latest updates, the global fashion giant H&M has planned to cut jobs. A move aimed at cutting costs, H&M layoffs are expected to impact as many as 1,500 jobs.
According to a Reuters report, the Swedish company has decided to sack employees amid softening demand as consumers try to cope with a spike in cost of living. At present, H&M roughly employs about 15,000 people, out of which it plans to sack the mentioned number.
The report adds that H&M would book a restructuring charge of 800 million Swedish crowns ($75.80 million) in the fourth quarter. Before this, in September, H&M also launched a plan to save about 2 billion Swedish crowns per year.
“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. We will support our colleagues in finding the best possible solution for their next step,” said Chief Executive Helena Helmersson as per the Reuters report.
H&M layoffs come at a time when a global economic loom is being predicted by many experts. Even in September, the fashion retailer posted relatively weak quarterly sales while also tackling stiff competition from cheaper rivals and Zara.
Apart from the fashion industry, even media has reportedly been affected by the mass layoffs. Recently, the global news network CNN reported that layoffs had commenced in the media house.