H&M plans to close its Edinburgh call centre, affecting 150 jobs.
- The closure is due to market competition, changing customer behaviour, and operational costs.
- Employees were informed in August about the closure plans, linked to a lease expiry.
- Alternative roles have been offered, but 150 jobs will still be cut by year-end.
- H&M’s owner reported slow sales in the third quarter, reflecting broader challenges.
H&M has announced its decision to cease operations at its Edinburgh-based call centre, resulting in a reduction of 150 positions by the end of the year. This decision stems from the need to adapt to increased market competition, evolving consumer behaviours and expectations, as well as rising operational expenses, according to the company. An H&M spokesperson highlighted the company’s ongoing evaluations to align operations with organisational goals, resulting in the closure of the customer service site.
The Edinburgh office employees were notified in August of the proposed site closure, driven by the impending expiration of the premises’ lease next year. The company has indicated that many employees have already found new employment, either within the company through redeployment or externally, as some have elected to leave voluntarily. Despite these efforts, approximately 150 staff members are anticipated to depart the company as part of this transition.
H&M’s parent company disclosed slow sales performance during the recent financial quarter, between 1 June and 31 August 2024. The group’s net sales were SEK 59 billion (£4.35 billion), a slight decrease from SEK 60.9 billion (£4.5 billion) in the corresponding quarter of the previous year. This financial backdrop provides context to the strategic decision to close the Edinburgh centre, as H&M navigates the economic and operational challenges facing the retail sector.
The closure of H&M’s Edinburgh call centre is a strategic decision influenced by financial and operational considerations.
