Swedish fashion giant H&M (HMb.ST) on Wednesday became the first big European retailer to start layoffs by announcing 1,500 job cuts owing to softening demand as consumers cope with soaring inflation.
The move by the world’s No.2 fashion retailer comes as surging cost of living and the blow from the Ukraine war hurt consumer spending and pressured companies across Europe and the United States to save cash.
The company said the savings would start to kick in from the second half of next year, while it will take a restructuring charge of 800 million Swedish crowns ($75.80 million) in the fourth quarter.
“We are in a big transition and the whole retail industry is facing a lot of challenges,” H&M’s investor relations head Nils Vinge told Reuters, pointing to headwi
