H&M’s decision to shut its Edinburgh call centre by year’s end will lead to 150 job losses.
- The closure is attributed to increasing competition, changing customer habits, and high operational expenses.
- Staff were informed in August about the potential closure due to the lease expiring in 2025.
- The fashion retailer has held consultations to mitigate job losses through alternative roles and voluntary departures.
- Operations at the call centre will cease on 14 December, with final closure in March 2025.
H&M has announced the closure of its Edinburgh call centre, a move expected to result in the loss of 150 jobs by the end of the year. This decision comes as the company faces significant challenges, including intensified competition, evolving customer behaviours, and rising operational costs. The closure is also linked to the upcoming expiration of the lease for the Waverley Gate office in 2025.
Workers were first informed of the proposed shutdown in August. Documents accessed by BBC Scotland News revealed that employees were provided a two-week notice of their termination, though those eligible for more extended notice periods would receive compensation in lieu. H&M has initiated consultations with the affected employees, spanning from September to November, aiming to reduce the number of redundancies through various means.
A spokesperson for H&M explained: “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company. 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.”
During the consultation period, the job losses have been somewhat alleviated as some employees have been offered alternative positions within the company, secured employment elsewhere, or opted to leave voluntarily. The call centre will officially cease its operations on 14 December, with the complete shutdown of the site anticipated by March 2025.
H&M’s strategic decision reflects the need to adapt to market challenges while mitigating job losses through employee support and consultation.
