H&M might be laying off some staff due to the impact of the coronavirus epidemic on the company. This may lead to thousands of fashion retailer company staff losing their jobs. Moreover, the outbreak is affecting several other businesses, as many countries are on lockdown to contain coronavirus spread.
Several H&M stores in the US, Germany, and other places are closed. On Monday, The company said dialogue is ongoing about temporary layoffs. However, this may affect several thousand workers. Also, it’s not possible to give an exact number yet.
As of 2018, the company has over 123,000 employees. These stats come from the most recent annual report of the company.
H&M considers terminating employments
In addition, due to the negative impact of coronavirus on the business, the company might have to terminate employment. This is according to a statement from H&M.
The company is also reviewing other aspects of its business. This includes payment of rent, purchasing, and spending decisions.
This move precedes an expected surge in layoffs across restaurants, retail stores, and travel sectors. All of which hinges on the negative impact of the COVID-19 outbreak.
As of March 23, 2020, over two-third of H&M stores globally are temporarily shutdown. Also, most mall companies that host H&M stores are already temporarily shutdown.
H&M has 5,062 stores globally, and 3,441 of these stores are not open.
Helena Helmersson, the CEO of H&M stores, said the company is doing everything within its power to manage the situation on the ground. Also, she went on to say that she hopes they will be able to restart the operation as soon as possible.
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Presently many countries are on lockdown. And citizens are advised to stay at home to help their country slow down the spread of the virus. This is the reason several companies are closing down their stores as most of their customers have to stay at home at this trying time.
