TechHR
ex
L&D
UNPLUGGED
Sphere
About Us • Contact Us
People Matters ANZ
People Matters Logo
Login / Signup
People Matters Logo
Login / Signup
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

 

 

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
  • About Us
  • Advertise with us
  • Become a sponsor
  • Contact Us
  • Feedback
  • Write For Us

Follow us:

Privacy Policy • Terms of Use

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

People Matters Logo
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast
Login / Signup

Categories:

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
Retail giant H&M to cut 150 jobs as part of operational shift

News • 12th Nov 2024 • 2 Min Read

Retail giant H&M to cut 150 jobs as part of operational shift

Talent Management#HRTech#Layoffs#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
984 Reads
H&M cited the need to reevaluate its operations in response to the shifting retail landscape, in which online shopping and new competitors have reshaped the industry.

H&M, the global fashion retailer, has announced the closure of its call centre in Edinburgh, leading to an anticipated 150 job losses by the end of the year. The decision, which has left many employees and their families facing an uncertain future, is attributed to changing customer behaviours, heightened market competition, and rising operational costs.

Located in Waverley Gate, the Edinburgh call centre served as a hub for customer service operations. In August, employees were informed of a proposal to shut down the site, initially prompted by the expiration of the building’s lease in 2025. 

H&M cited the need to reevaluate its operations in response to the shifting retail landscape, in which online shopping and new competitors have reshaped the industry. This transformation, accelerated by the pandemic, has already led the retailer to close over 250 stores globally in recent years as more customers gravitated towards digital shopping channels.

The process leading up to the closure included a consultation period that spanned from September to November. Although the initial announcement was met with disappointment and surprise among staff, H&M worked to mitigate the impact by offering alternative positions where possible. 

Some employees accepted new roles or opted for other employment, while others chose to leave voluntarily, resulting in a slight reduction in the total number of job losses. However, those who are ultimately affected by the closure were given two weeks' notice of their termination, with additional pay in lieu for employees entitled to a longer notice period. Reports indicate that the announcement meeting lasted a mere five minutes, leaving many in shock over the abruptness of the news.

Deputy First Minister Kate Forbes had previously appealed to H&M’s management to reconsider the job cuts, emphasizing the impact on the Edinburgh workforce and urging the company to explore options that might prevent redundancies. Despite these efforts, the closure will go ahead, with operations winding down by December 14, 2024, and the building itself expected to close permanently by March 2025.

In a statement, an H&M spokesperson acknowledged the difficulty of the decision, explaining, “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company. Having looked into the scope of our customer service set-up, increased competition in the market, our customers changing behaviours and expectations, and operational costs, we have made the difficult decision to proceed with the proposed closure of our customer service site in Edinburgh by the end of the year.”

The Scottish government has stepped in to support affected employees through its Partnership Action for Continuing Employment (PACE) service, which provides assistance to workers facing redundancy. A Scottish government spokesperson described the situation as “a concerning time for employees and their families,” and expressed commitment to helping ease the transition for impacted workers.

The closure marks another step in H&M’s adaptation to the evolving retail environment, where digital demand is increasing as physical store operations shrink. However, it leaves a lasting impact on Edinburgh’s local workforce, highlighting the challenges traditional retail giants face as they adjust to a rapidly changing market.

Read More

Did you find this article helpful?


You Might Also Like

NASA restructures, cuts jobs

NEWS • 11th Mar 2025 • 3 Min Read

NASA restructures, cuts jobs

Talent Management#HRTech#Layoffs#HRCommunity
DHL announces 8,000 job cuts

NEWS • 7th Mar 2025 • 3 Min Read

DHL announces 8,000 job cuts

Talent Management#HRTech#Layoffs#HRCommunity
Disney, Wells Fargo & Renault Nissan cut thousands

NEWS • 6th Mar 2025 • 5 Min Read

Disney, Wells Fargo & Renault Nissan cut thousands

Talent Management#HRTech#Layoffs#HRCommunity
NEXT STORY: Kāinga Ora restructuring results in 540 job cuts, 310 more to follow

Trending Stories

  • design-thinking-hr

    New tech incoming: how do you get people to accept it?

  • design-thinking-hr

    Why people metrics matter more than ever

  • design-thinking-hr

    ChatGPT Walks It Back — AI Giants Race Ahead

  • design-thinking-hr

    Skype is dead: Did Microsoft's leadership let a billion-doll...

People Matters Logo

Follow us:

Join our mailing list:

By clicking “Subscribe” button above, you are accepting our Terms & Conditions and Privacy Policy.

Company:

  • About Us
  • Advertise with us
  • Become a sponsor
  • Privacy Policy
  • Terms of Use

Contact:

  • Contact Us
  • Feedback
  • Write For Us

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

Get the latest Articles, Insight, News & Trends from the world of Talent & Work. Subscribe now!
People Matters Logo

Welcome Back!

or

Enter your registered email address to login

Not a user yet? Lets get you signed up!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

People Matters Logo

Welcome! Let's get you signed up...

Starting with the absolulte basics.

Already a user? Go ahead and login!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

Let's get to know you better

We'll never share your details with anyone, pinky swear.

And lastly...

Your official designation and company name.