H&M layoffs in Sweden will affect around 100 employees at the company’s Stockholm office, as the fashion group continues to simplify its organisation and shorten internal decision-making processes. The notice does not affect staff working in H&M stores, according to Swedish broadcaster TV4, which cited information confirmed to the news agency Direkt.
H&M layoffs target office roles, not stores
The Swedish fashion group has issued a redundancy notice covering about 100 employees at its Stockholm office. H&M confirmed the measure through its communications department, while stressing that the process concerns the corporate office rather than retail staff.
H&M has more than 5,200 employees at its Stockholm office and over 130,000 employees globally, according to the figures reported by TV4. The company has not yet detailed which departments will be most affected.
Håcan Andersson, from H&M’s communications department, told Direkt that the overall objective is the same across markets: “to simplify the organisation and shorten decision paths.” He added that the way this is done may differ from country to country, depending on local needs and conditions.
H&M is cutting jobs to shorten decision paths
The job cuts fit into a broader effort by H&M to make its organisation more efficient. In its latest quarterly report, the company said that shorter decision paths would allow it to act faster, improve supplier cooperation and respond more quickly to customer demand.
This is a central issue for large fashion retailers. H&M competes in a market where trends change quickly, online retail has become more important and price-sensitive consumers compare offers across brands and platforms. For companies such as H&M, faster internal processes can affect purchasing, logistics, store presentation and online sales.
The Stockholm notice therefore appears less connected to a single local downturn and more to H&M’s wider strategy of cost control, organisational simplification and faster operational decisions.
A profitable retailer facing cautious consumer demand
The redundancy notice comes after a mixed financial period for the Swedish retailer. In the first quarter of 2026, H&M reported net sales of SEK 49.6 billion, down from SEK 55.3 billion a year earlier. In local currencies, sales decreased by 1 percent, while the company also had around 4 percent fewer stores than at the same point the previous year.
At the same time, profitability improved. Operating profit rose by 26 percent to SEK 1.5 billion, supported by cost control and an improved gross margin. CEO Daniel Ervér described the quarter as marked by cautious consumption and large currency effects, but said the company had strengthened profitability.
For the full financial year 2025, H&M reported net sales of SEK 228.3 billion and operating profit of SEK 18.4 billion, with an operating margin of 8.1 percent. The figures show that the group remains profitable, even as it continues to adapt its organisation and store network.
Sweden’s fashion giant is still reshaping its global model
H&M’s restructuring reflects a wider challenge for Nordic and European retailers: how to remain competitive while balancing physical stores, online sales, sustainability pressures and changing consumer habits.
For Sweden, the company remains one of the country’s most visible global brands. The latest redundancy notice is limited in scale compared with H&M’s global workforce, but it signals that even profitable retailers are continuing to reshape office structures in response to a faster and more uncertain retail environment.
The next steps will depend on the outcome of the formal process in Stockholm and whether similar organisational changes are extended to other markets.
