H&M has announced the closure of its Edinburgh call center with a job loss of 150 employees anticipated by year’s end.
- Employees were informed in August about the potential closure due to expiring lease in 2025.
- The closing decision is attributed to increased competition and changes in customer behavior and operational costs.
- Consultations were held to mitigate job losses, with some staff offered alternative roles or leaving voluntarily.
- The call center will close operations by December 14, shutting down completely by March 2025.
H&M’s decision to close its Edinburgh call center will result in the loss of 150 jobs as the company seeks to respond to market challenges and evolving consumer behaviors. Workers were notified back in August of the potential closure, coinciding with the lease at Waverley Gate expiring in 2025.
The fashion retailer highlighted rising competition as a key factor influencing this move. Alongside, there has been a notable shift in how customers interact with services, driving operational changes. A spokesperson for H&M stated, “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company.” This evaluation process led to the difficult decision to close the call center.
In an effort to reduce the impact, H&M conducted consultations with employees from September to November. This period allowed for exploring alternatives such as offering different roles within the company, or others choosing to resign. Despite these efforts, a significant number of redundancies could not be avoided.
Operations at the call center will cease on December 14, with the complete closure slated for March 2025. Employees who are legally entitled to longer notice periods will receive pay in lieu of notice as part of their redundancy package.
The closure of the call center underscores the significant operational shifts companies face in maintaining competitiveness.
