Swedish fashion retailer H&M has announced 1.500 job cuts as part of a plan launched in September to save 2 billion Swedish crowns per year.
The fashion giant said the layoffs are caused by softening demands due to consumer’s coping with high inflation. This was reported by online media, Yahoo Finance.
The Ukrainian war has affected consumer spendings through rising costs of living while European and American companies focuses on cutting expenses and saving cash.
H&M said the layoffs will take a restructuring charge of 800 million Swedish crowns in fourth quarter and are to be initiated from the second half of next year.
H&M Head of Investor Relations, Nils Vinge, told Reuters the whole industry is facing challenges and that consumers prioritize buying food, energy and gas leaving less spendings for fashion clothes.
The largest part of the cuts will be made in Sweden.
($1 = 10.5546 Swedish crowns)