H&M, which recently announced the cut of 1,500 jobs due to the application of the cost reduction plan, told Lusa on Monday that “it is too early” to say how and if the restructuring will affect Portugal.
“It is too early to say how and if it will affect basic functions in Portugal”said a source from the Swedish group, in a written response to Lusa.
H&M announced on November 30 that it will cut 1,500 jobs due to the implementation of the cost reduction plan, presented two months ago, and the increase in efficiency, after the drop in profits when closing the business in Russia.
The program, which aims to save SEK 2 billion (about 183 million euros) a year from the second half of 2023, it will cost about 800 million (73 million euros) in restructuring costs, which will be accounted for in the fourth quarter, the Swedish fashion chain says in a statement , noting that the job cuts are also due to the closure of its operation in Russia due to the invasion of Ukraine.
“The program to reduce costs and increase efficiency that we have started involves the restructuring of the organization,” said the executive president of the multinational, Helena Helmersson.
He continued: “We are aware that some colleagues will be affected. We will help you find the best possible solution. for the next step.”
The Swedish group, which has more than 100,000 employees, has 4,664 stores in 77 countries and is also present in 57 online markets.
H&M also mentioned that the drop in profits was due to the closure of the activity in Russia due to the military intervention in Ukraine, which cost it 2,104 million Swedish crowns (193 million euros), and factors such as the increase in the price of the material raw materials, energy costs, deliveries and transportation, according to the financial statement published two months ago.
Source: Observadora
