H&M on Friday said that it plans to close down more than a quarter of its stores and lay off as many as 588 workers in Spain, Reuters reported.
The company will lay off employees for undisclosed organisational, productive, and economic reasons, according to a joint statement from unions CCOO and UGT.
H&M operates 91 locations in Spain and employs about 4,000 people, according to its annual report. The company acknowledged in a statement to Reuters that it plans to close 28 shops.
H&M said that having stores at the right locations and staying competitive was a priority and that it was “consistently” evaluating its store portfolio.
“This involves … enhancing the shopping experience in our existing stores, actively seeking out new opportunities and making informed decisions about closing stores when necessary,” it said.
The decision is consistent with other major fashion retailers across the world, which have shuttered smaller locations in recent years while developing flagship branches that draw more visitors and may also serve as e-commerce logistics hubs.
The decision is consistent with other major fashion retailers across the world, which have shuttered smaller locations in recent years while developing flagship branches that draw more visitors and may also serve as ecommerce logistics centres.
According to union sources, H&M in Spain has likewise struggled with absenteeism and employees complaining about work overload.
In November 2022, H&M stated a global plan to slash 1,500 positions to save expenses. In Spain, it already reduced its payroll by 400 individuals in 2021.
“We believe the measure is too aggressive and it is possible to look for solutions which don’t imply job losses,” the unions said.
Negotiations with unions in Spain are set to begin in September. H&M stated that it had previously notified the union and would work closely with them.
Angeles Rodriguez, a CCOO leader, stated that the unions were taken aback by the layoff news.
“The company never showed any weird behaviour and was complying with a pay raise agreed last year,” she said.
H&M granted significant pay increases last year after workers protested and went on strike.H&M is the world’s second-largest listed clothing retailer behind Inditex and is a fixture in malls and high streets the world over.
