Fashion retailer H&M to cut 1,500 jobs in cost-saving drive

The world's No.2 fashion retailer H&M said on Wednesday it will cut 1,500 jobs to reduce costs amid softening demand as consumers cope with a surge in cost of living. The Swedish company, which employs roughly 155,000 people, had launched a plan to save 2 billion Swedish crowns per year in September. ($1 = 10.5546 Swedish crowns)

The world's No.2 fashion retailer H&M said on Wednesday it will cut 1,500 jobs to reduce costs amid softening demand as consumers cope with a surge in cost of living.

The Swedish company, which employs roughly 155,000 people, had launched a plan to save 2 billion Swedish crowns per year in September. A restructuring charge of 800 million Swedish crowns ($75.80 million) would be booked in the fourth quarter, H&M said in a statement.

"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," Chief Executive Helena Helmersson said. "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. ($1 = 10.5546 Swedish crowns)

Also Read: Turkey summons Swedish envoy over images ''insulting'' Erdogan