Swedish fashion giant H&M has asked employees in Singapore and other East Asian markets to reapply for jobs as part of a wider regional restructuring.
The development follows earlier reports, previously covered by ScandAsia, that H&M planned to move its Southeast Asia headquarters from Singapore to Kuala Lumpur.
According to CNA, staff were informed on 11 May that the company would begin a “calibration” exercise across its East Asia operations. Employees must now apply for available positions within the company, with unsuccessful staff potentially facing “mutual separation” under local employment laws.
Workers can reportedly apply for 178 available roles across Asia. Around 80 of these positions are located in Southeast Asia, mainly in Kuala Lumpur, Manila and Ho Chi Minh City. Only four of the listed roles are based in Singapore.
Employees told CNA that several functions previously handled in Singapore are being relocated to Kuala Lumpur and Manila.
The process has created uncertainty among staff, according to employees interviewed by CNA. Some workers said they were concerned about possible pay differences, tax rates and relocation costs if offered positions outside Singapore.
H&M has not confirmed the number of jobs affected. The company said it regularly reviews its organisation to remain “flexible, efficient, and fast-moving” and added that it would fulfil obligations under local labour laws.
Singapore’s National Trades Union Congress said it was prepared to support affected workers through career assistance and job transition programmes.
