H&M will close its call centre in Edinburgh by year’s end, affecting 150 jobs.
- Employees were notified of the closure plan in August due to an expiring lease.
- Rising competition, shifting consumer habits, and operational costs cited as reasons.
- The workforce was given two weeks’ notice, with some receiving pay in lieu.
- Consultations helped reduce job losses through alternative roles and voluntary exits.
H&M has announced the closure of its Edinburgh call centre, resulting in the loss of 150 jobs by the end of the year. This decision follows a notification given to staff in August, as the lease on the Waverley Gate office expires in 2025. The retailer has attributed the closure to increased market competition, evolving customer behaviours, and rising operational costs, according to reports by the BBC.
Documents reviewed by BBC Scotland News disclosed that employees received a two-week notice period for dismissal. For those entitled to more extended notice, compensation will be provided in lieu of the notice period.
A statement from a H&M spokeswoman revealed, “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company.” She further explained that after reviewing the customer service operations, the decision was made due to competitive pressures, changing customer expectations, and cost concerns.
Between September and November, H&M engaged in consultations with employees, which allowed for a reduction in the number of compulsory redundancies. This was achieved by offering alternative roles within the company, supporting some employees in finding new employment, or employees opting to leave voluntarily.
The call centre is scheduled to cease operations on 14 December, with the premises shutting down completely in March 2025.
The closure of H&M’s call centre marks a significant operational change driven by market conditions.