Swedish fast-fashion chain Hennes & Mauritz (H&M) plans to cut 1,500 jobs worldwide as part of its plans to save €73 million by the end of the year. The company is looking to generate funds in order to finance major corporate restructuring, the company announced on Wednesday.
In September, H&M unveiled its plans to reduce its operating costs by 182 million per year, the first of the effects of which it hopes to see by mid-2023.
The Swedish multinational company currently employs 155,000 employees globally. In Belgium, the company owns 61 locations, as well as 15 additional stores owned by its subsidiaries, which include Weekday, COS, Monki, and Arket.
This year, the company took a significant financial hit after pulling out of the Russian market in solidarity with Ukraine and international sanctions.
The cost of selling its Russian assets has weighed heavily on its third-quarter results. Analysts predicted that the company would make €272 million in pre-tax profits Q3, but this fell to just €63 million. Net profit dropped 89% to just €49 million.
In total, H&M closed just over 30 stores out of a total of 172 in the Russian market. H&M is also set to close its three stores in Belarus. At the end of August, the store was present in 4,664 locations worldwide.