Exiting the Russian market has a huge impact, H&M lays off employees globally

Swedish fashion retailer H&M announced on December 1 that after withdrawing from the Russian market, they would launch a cost-cutting plan and will lay off about 1,500 people worldwide. Save approximately 2 billion Swedish krona.

AFP reported that H&M said in a statement: In addition to administrative and management costs, this plan will also lay off 1,500 people to reduce labor costs.

H&M announced this reorganization plan in September this year due to a sharp decline in profits in the third quarter. H&M decided to “end its business in Russia” after Russia invaded Ukraine, which had a huge impact on the company’s profits.

H&M Group CEO Helena Helmersson said: This is a cost efficiency plan we launched after reviewing our organizational structure. We will pay great attention to the impact of this plan on our colleagues. impact.

According to H&M, this plan is expected to cost about 800 million Swedish kronor, but it is expected to save 2 billion Swedish kronor per year.

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