Another unexpected consequence of the war in Ukraine. H&M announced on Wednesday the elimination of 1,500 jobs worldwide, as part of its savings plan announced in September. “The cost and profitability program that we have started means that we are reviewing our organization and we are aware that our colleagues will be affected,” said the CEO of the Swedish clothing giant, Helena Helmersson.
At the end of September, the world number 2 in the sector announced a new plan aimed at annual savings of 2 billion crowns (about 183 million euros).
Results affected by its disengagement in Russia
In the third quarter, H&M’s results were largely affected by its withdrawal from Russia. After shutting down all of its sales in the country in March after Moscow invaded Ukraine, the group announced in July that it was withdrawing from Russia.
In September, H&M said it had just over 30 stores permanently closed out of the group’s 172 stores in Russia.