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H&M to cut 1,500 jobs as it fights to compete with Primark and Boohoo
https://www.whatjobs.com/news/united-kingdom/uk-business-news/hm-to-cut-1500-jobs-as-it-fights-to-compete-with-primark-and-boohoo
By Nagasunder in UK Business News, posted December 1, 2022
H&M is under pressure to compete with stores like Primark and Boohoo and react to customers cutting back due to the cost of living crisis.
Hargreaves Lansdown senior investment and markets analyst Susannah Streeter said the retailer must respond to the situation to remain competitive.
The warning comes as H&M announced plans to slash 1,500 employees from all of its shops.
READ MORE: H&M CLOSES ONE IN FIVE UK STORES TO CUT COSTS
The Swedish company stated the action is a part of a "global programme to decrease expenses and further improve business efficiency."
The restructuring will begin in the second half of 2023 and is intended to contribute to annual savings of two billion Swedish Krona (£158.2m).
According to H&M, the cuts will cost the company 800 million Swedish krona (£63.3m) this quarter.
H & M WARNS OF £160 MILLION COST-CUTTING MEASURES AFTER PULLING OUT RUSSIA AND MASSIVE PROFIT DROP
The business, which also owns the Cos and Monki brands, has 4,700 locations and employs over 155,000 people around the world.
Chief executive Helena Helmersson 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.
"We will support our colleagues in finding the best possible solution for their next step."
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Susannah Streeter of Hargreaves Lansdown added: "Keeping the lights and heating on in vast stores is becoming increasingly unaffordable with energy prices so volatile.
"With shoppers also becoming impressively price-sensitive as cost-of-living headwinds continue to whip up, retailers are finding it more difficult to pass on increases in input costs.
"Shoppers are showing signs of trading down and hunting out bargains, so the pressure is on H&M to compete with chains seen as offering greater value, from Primark in high streets to Boohoo and Shein online."
Source: Business Live
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