H&M is set to close its Edinburgh call centre, resulting in 150 job losses by year-end.
- The decision stems from rising competition, changing consumer habits, and operational costs.
- Employees were informed in August, with many securing new roles since then.
- The company has made efforts for staff redeployment, alleviating the number of job cuts.
- H&M’s action coincides with slow sales reported in the third quarter of 2024.
H&M has announced the imminent closure of its call centre located in Edinburgh, a decision that will lead to the loss of 150 jobs by the end of this year. The retail giant attributes this move to several factors, including heightened competition within the industry, evolving customer behaviours, and increased operational expenses.
In August, employees working at the Waverley Gate office were briefed on the potential closure, primarily due to the impending expiry of the site’s lease next year. Since the announcement, H&M has actively sought to support its staff, many of whom have already transitioned to other employment opportunities or alternative roles within the company through redeployment efforts.
An H&M spokesperson highlighted the company’s strategic evaluation of its customer service operations, stating, “Having looked into the scope of our customer service set-up, increased competition in the market, our customers changing behaviours and expectations and operational costs, we have made the difficult decision to proceed with the proposed closure of our customer service site in Edinburgh by the end of the year.” Despite these challenges, the spokesperson acknowledged that, “As the process has continued, the number of affected colleagues has reduced through securing alternative roles through redeployment, as well as colleagues securing alternative employment elsewhere and electing to leave voluntarily.”
The closure announcement aligns with H&M Group’s recent financial reports, which indicate a slowdown in sales during the third quarter of 2024. Specifically, the company reported net sales of SEK 59 billion (£4.35 billion) for the period from June to August 2024, a decrease from SEK 60.9 billion (£4.5 billion) in the same quarter of the previous year.
The closure of H&M’s Edinburgh call centre reflects broader challenges in the retail sector as companies adapt to a competitive market landscape.
