H&M relocation comes amid major restructuring of Asia-Pacific operations
Fashion retailer H&M is laying off employees in Singapore as it relocates its regional headquarters for Southeast Asia to Malaysia, according to reports.
H&M is eliminating 79 positions of its regional support workforce, with the majority of affected employees coming from Singapore, Malay Mail reported.
H&M Singapore has not given specifics on the total number of employees affected in its operations, but it confirmed the organisational changes happening.
"We are constantly working on improvements to adapt to our customers' expectations. As part of that, we regularly review how we work to ensure our organisation remains flexible, efficient and fast-moving," H&M told The Straits Times.
It also maintained that its retail presence will remain in Singapore as a reflection of its long-term commitment.
According to Malay Mail's report, employees will undergo a calibration process by 21 May where they will be required to complete an assessment survey. This will be followed by interviews and evaluation between May 25 and June 19.
Employees' placement decisions will be based on 2025 contribution ratings and recent disciplinary records, according to the report.
Final outcomes of employment decisions will be communicated before mid-June, the management said. Mutual separation agreements will be proposed for if an alternative position cannot be provided for the employee.
Meanwhile, the Singapore Manual and Mercantile Workers' Union (SMMWU) said H&M is a non-unionised company, but noted that some of its employees may be union members.
Andy Lim, secretary-general of the SMMWU, told The Straits Times that the union and the National Trades Union Congress are ready to offer assistance and resources to employees who need to transition to new job opportunities.
It is also ready to "provide financial support if needed."
H&M's restructuring
The layoffs at H&M comes as the Swedish fashion retailer carries out a major restructuring of its Asia-Pacific operations.
Under the changes, a new Continent Asia Pacific will be established in Shanghai to oversee five sales markets, Malay Mail reported.
The head office of the Southeast Asia sales market will now be located in Kuala Lumpur, Malaysia, while the Northeast Asia sales market will be moving to Tokyo, Japan.
The consolidated structure and staff relocations are expected to be operational by 1 July.
