H&M to axe 1,500 jobs as it looks to cut costs

The firm, which employs around 155,000 people worldwide, said the job losses were part of a wider cost-cutting programme, first announced in September, which is expected to generate annual savings of Swedish krona 2bn (£158m) from the second half of 2023.

The retailer added that it also expects to book a restructuring charge of just over SEK 800m in the fourth quarter.

Helena Helmersson, chief executive, said: "The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this. We will support our colleagues in finding the best possible solution for their next step."

Hennes & Mauritz, which owns H&M, Cos, &OtherStories and Monki, among other brands, has been hit by a number of headwinds in Europe, its largest market. In particular, the war in Ukraine and surging inflation have pushed up costs while denting consumer confidence.

Third-quarter pre-tax profits came in well below expectations, tumbling to SEK 689m from SEK 6.09bn a year previously. Hennes & Mauritz said at the time that it had seen a spike in costs, notably a one-off SEK 2.1bn charge for winding down its business in Russia.