Swedish fashion conglomerate, H&M, has recently undertaken a restructuring exercise which has led to job cuts in Singapore. This move comes as the retailer transfers its Southeast Asian hub from Singapore to Kuala Lumpur in Malaysia.
The restructuring operation resulted in a reduction of 78 roles from a total regional workforce of 256 employees. While the exact breakdown of the redundancy hasn’t been made public, it has been confirmed that the majority of job cuts took place in the Singapore office.
In replying to inquiries, H&M Singapore said that it is “fully backing” employees through the organizational shifts. However, the company did not disclose the exact number of dismissed staff members or specify the affected roles. H&M stated that as a company, they constantly strive to meet customer expectations and this includes regular reviews of their operational efficiency and agility.
Despite the recent layoffs, H&M maintains that Singapore remains a crucial market for them. The retailer confirmed that it would continue to sustain an office in the country. “We will continue to maintain our retail presence reflecting our long-term commitment,” said a representative of the company.
H&M first entered the Singapore market in 2011 with its Somerset outlet. Currently, the brand operates six stores in the country. Over the past couple of years, however, H&M has been closing some of its physical stores. In March 2023, the retailer closed its two-storey outlet at Ion Orchard after serving customers for over a decade. The Tampines Mall store was shut in August 2020, followed by the Waterway Point outlet in Punggol in January 2021.
The Singapore Manual and Mercantile Workers’ Union (SMMWU) released a statement saying that while H&M Singapore is not a unionized entity, some employees could be union members. SMMWU secretary-general Andy Lim asserted that both the National Trades Union Congress and the SMMWU are prepared to offer assistance to these members and help them transition to new job opportunities.
Why is H&M moving its Southeast Asian headquarter from Singapore to Malaysia’s Kuala Lumpur?
– Although H&M did not provide a specific reason for the shift of its Southeast Asian headquarters, such decisions are often influenced by cost factors, market opportunities, or strategic alignment.
What are some of the steps H&M is taking to support its affected employees?
– Although additional details were not provided, H&M Singapore stated that they are “fully supporting” their employees during these organizational changes.
How will H&M’s presence in Singapore change as a result of this move?
– Despite the layoffs and the shift of its regional headquarters, H&M has affirmed that Singapore remains an important market for them. The company will maintain a retail presence in the country, reflecting their long-term commitment.
