Updated January 26th, 2024 at 21:29 IST
H&M to sack nearly 600 employees, shut down a quarter of Spanish stores
Negotiations with unions are scheduled to commence in September, marking a critical phase in addressing the concerns raised by the CCOO union.
H&M layoffs: Swedish fashion giant H&M has decided to shutter over 25 per cent of its stores in Spain, resulting in the potential layoff of up to 588 workers, according to a statement by the country's CCOO union. This decision positions H&M in direct competition with its Spanish rival, Inditex, the owner of Zara.
The company cited organisational, productive, and economic reasons for the collective layoffs, impacting 28 out of its 91 stores in Spain. The move comes as part of H&M's ongoing efforts to adapt to changing market dynamics and enhance operational efficiency.
Negotiations with unions are scheduled to commence in September, marking a critical phase in addressing the concerns raised by the CCOO union. The union expressed its reservations about the "aggressive" nature of the measures, advocating for alternative solutions that could potentially avert job losses.
H&M, globally known as the second-largest listed clothing retailer, faces stiff competition from Inditex, the parent company of Zara. The decision to scale down operations in Spain reflects H&M's commitment to navigating challenges and optimising its business model.
As of now, H&M has not responded to requests for comments on this strategic move. The closure of a significant number of stores and potential workforce reductions highlight the evolving landscape of the retail industry, with companies adapting to meet shifting consumer preferences and economic realities.
(With Reuters inputs.)
Published January 26th, 2024 at 21:29 IST