H&M to cut 1,500 jobs to reduce costs

Swedish group H&M announced Wednesday that it will cut 1,500 jobs as part of its cost-cutting program and a restructuring charge of SEK 800 million (EUR 73.23 million) in the fourth quarter.

H&M, the world's No. 2 fashion company with about 155,000 employees, launched a plan in September to save SEK 2 billion a year.

"The cost-cutting and efficiency improvement program we have launched involves a review of our organization and we are very aware that colleagues will be affected by this," said Helena Helmersson, chief executive, in a statement.

"We will help our colleagues find the best possible solution for their next step," she added.

Last September, the group had announced it was preparing this cost-saving plan and was also planning its disengagement from the Russian market following the invasion of Ukraine.

The Swedish group's net sales for the third quarter rose 3% from a year earlier to 57.5 billion kronor (5.38 billion euros). But its quarterly net profit for H&M was cut ninefold to 531 million kroner (about 49 million euros).