Stockholm, Sweden — Swedish fashion retailer H&M said Wednesday it would cut some 1,500 jobs worldwide as a result of a cost-cutting programme launched following its decision to leave the Russian market.
“The programme relates to administrative and overhead costs, and also entails reducing the workforce by around 1,500 positions,” the company said in a statement.
The restructuring programme was announced in September, as the clothing giant announced a sizeable drop in third quarter profits, which was largely impacted by the company’s decision to “wind down the business in Russia” following the invasion of Ukraine.
“The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this,” CEO Helena Helmersson said in the statement Wednesday.
According to H&M, the programme is expected to cost some 800 million Swedish kronor ($76 million) but would provide annual savings of around two billion kronor.
In September, H&M said it had closed just over 30 of its 172 shops in Russia.
