The announcement comes via an official notice of workforce reduction to the state of New York. The cuts affect the office on Fifth Avenue in Manhattan, where the company currently has a total of 246 employees. Earlier this year, a similar notice was submitted regarding H&M’s office in Chicago, which then affected 181 employees starting in May.
The company states that the measures are part of ongoing work to adjust the company’s structures and adapt the business to the market.
We are continuously developing our business to meet a changing customer landscape, and we regularly review how we work to remain flexible, efficient and agile, H&M writes in a statement to Retail Dive regarding the changes in New York.
The company adds that the priority is to provide support, resources and guidance to the affected employees during the transition. Which specific role types or departments are affected have not been communicated.
The cuts in the USA are in line with the internal change work that has also reached the Swedish operations. In early June, it was reported that H&M had issued notices of layoff affecting just over 100 of the approximately 5,200 employees at the offices in Stockholm.
The purpose of the reorganization is described by the company as a way to adapt the structures to ultimately build a closer relationship with consumers. When the Swedish notice of layoff was issued, it was confirmed that the strategy applies to the entire group internationally, but that the practical steps are designed according to the conditions of different markets.
The overall goal is the same for all markets – to simplify the organization and shorten decision-making paths. How we do it may differ between countries, depending on local needs and conditions, said Håcan Andersson from H&M’s communications department in connection with the Swedish notice of layoff in June.