H&M Closes 3,500 Stores and Reduces Tens of Thousands of Employees

The total number of closed stores around the world reached 3440 out of 5060.

Swedish fashion brand H&M, the second-largest revenue retailer in the world’s apparel retail market, is forced to temporarily downsize tens of thousands of employees during the suspension of operations due to coronavirus proliferation in the U.S. and Western Europe. 

H&M has recently been forced to close down in key markets, including the UK and Germany. The total number of closed stores worldwide has reached 3440 out of 5060. It is expected that the forced closure of most of the retail chain may result in the loss of several billion dollars by 2020.

H&M, like other major retailers, is expected to pay the salaries of all suspended employees during the quarantine period. It also became known today that the company has refused to pay dividends for 2019.  

Faced with a significant drop in sales, H&M said that its business development plans would be revised to reduce potential losses. The company is considering a scenario to reduce the number of employees around the world due to the negative impact on the business situation with Covid-19 worldwide.