EMCC European Monitoring Centre on Change

H&M

Company/Organisation:
H&M

Geographic Location

Country: Sweden

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.71 - Retail sale of clothing in specialised stores
Number Employed: 10541

Employment Effects

Announcement Date: 12-10-2022
Planned Job Reductions min: 1900
Type of Restructuring: Internal restructuring
Employment Effect Start: 12-10-2022
Direct Dismissals: 400
Other Job Reduction Measures: 1500

Additional Information

The Swedish clothing company, H&M, announced a plan to dismiss about 400 employees from 69 of its 150 shops in Sweden. Cooperation negotiations have been initiated with the Swedish Commercial Employees’ Union. The negotiations take place at the local level and for each shop separately. According to the PR department of H&M, employees that are being laid-off will be offered alternative employment in the company, though they have not specified further details on what this will entail.

The company needs to review and reorganize its operations due to changed customer behaviour and needs in the digital marketplace. Customers have increased their online shopping which is causing stores to close down.

In 2020, H&M cut about 1150 jobs in Sweden because of the digitalisation processes of the company and the effects of the COVID-19 pandemic. (H&M-2020-SE

H&M is a Swedish multinational clothing company in the sector of fast-fashion clothing for men, women, teenagers, and children. The company employs around 171,000 people in 69 countries. In Sweden, H&M had 10,541 employees in 2021.

Updated 29/12/22

In addition to the previously announced 400 dismissals, the Handels trade union has warned that reductions in contracted working time for an additional 1,500 employees is to be expected. The trade union is concerned that for some employees this measure and the resulting salary cuts will be so drastic that it will cause significant difficulties for making ends meet. The cooperation negotiations have been taken from local level to central level. 

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