H&M is set to close its Edinburgh-based call centre, impacting 150 jobs.
- The decision is influenced by increased market competition and evolving customer behaviour.
- Employees were notified of the potential closure in August due to an expiring lease.
- H&M reported a drop in net sales during the third quarter of 2024.
- Efforts are in place to redeploy staff and offer alternative employment opportunities.
H&M has announced the impending closure of its call centre in Edinburgh, a move that will see 150 employees leave the company by the year’s end. This decision has been driven by several factors, including growing competition within the market and notable shifts in customer behaviour. Additionally, operational costs have also contributed to this outcome. Employees at the Waverley Gate office were first informed of the proposed closure back in August, primarily due to the lease of the premises expiring in the upcoming year.
The retailer has made efforts to mitigate the impact on its workforce by facilitating opportunities for staff redeployment into other roles within the company. Some employees have already transitioned into new positions or secured employment elsewhere. However, despite these measures, a significant number of workers, specifically 150, will still face redundancy by the end of the year. An H&M spokesperson remarked on the situation, stating, “These decisions are not made lightly, and unfortunately, the closure will result in valued colleagues leaving the company.”
Further compounding the issue is the slow performance in the company’s financial results for the recent quarter. The H&M group recorded net sales of SEK 59 billion (£4.35 billion) between June and August 2024, which illustrates a decrease from SEK 60.9 billion (£4.5 billion) in the same period of the previous year. The retailer’s ongoing economic pressures have inevitably influenced its operational strategies, including the difficult decision to shut down the Edinburgh call centre.
The closure of H&M’s Edinburgh call centre marks a significant shift in the retailer’s operational strategy amid economic and market challenges.
