1. News
March 24, 2020

Covid-19: H&M considers laying off thousands of employees

Fast-fashion retailer H&M Group has revealed plans to temporarily lay off tens of thousands of workers worldwide as the coronavirus (Covid-19) affects business.

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Fast-fashion retailer H&M Group has revealed plans to temporarily lay off tens of thousands of workers across the globe as the coronavirus (Covid-19) affects business.

The company is reviewing its operations and costs market-by-market based on local conditions and has started discussions on temporary layoffs.

The move will be followed by additional temporary redundancies in markets impacted by the pandemic.

No specific numbers have been given as of yet, but it is likely to affect employees in all parts of the business.

H&M is evaluating the possibility to terminate employment due to the negative impact of the outbreak.

The company also revealed that it has already experienced a significant negative impact on sales this month.

The retailer’s board has also decided to propose no dividend payment.

H&M CEO Helena Helmersson said: “We are doing everything in our power in the H&M group to manage the situation related to the coronavirus. My hope is that we will be able to get operations up and running again as soon as possible and welcome back all our customers in all our 74 store markets.

“This is an extraordinary situation in which we are forced to make difficult decisions, but with every challenge, there are also opportunities and I am convinced that we as a company – once we have made it through this – will continue to stand strong.”

The company has closed a total of 3,441 of its 5,062 stores. All H&M stores in markets such as Germany, the UK and the US have been closed on a temporary basis.

Online services are available through its digital sales channels in around 50 markets.

Confirmed novel coronavirus cases have crossed 380,000 while more than 16,000 deaths as of 23 March.

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Build resilience in the face of COVID-19 disruption

COVID-19 has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities. Are you interested in actionable insights on the business challenges induced by the pandemic? GlobalData's cross-sector report analyzes the significance of this major disruptive theme across industry verticals. It provides side-by-side research of alternative datasets to present you with unique quantitative analysis of the effects of COVID-19 and how these differ across sectors. Additionally, it offers qualitative analysis of each sector and analyzes COVID-19’s impact on leading companies. Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today.
by GlobalData
Enter your details here to receive your free Report.