H&M plans to shut down its Edinburgh call center by year-end, impacting 150 workers.
- The closure is driven by market competition, evolving customer behaviors, and operational expenses.
- Affected employees were informed in August due to the lease expiration next year.
- Many staff have already transitioned to new roles or found alternate employment.
- H&M reported a slight sales decline in the third quarter compared to last year.
H&M has announced its decision to close the Edinburgh-based call center by the end of this year, a move that will affect 150 employees. This decision aligns with H&M’s ongoing evaluation of its customer service operations in response to competitive market pressures, evolving customer preferences, and rising operational costs.
Employees working at the Waverley Gate office in Edinburgh were informed of this proposal back in August, primarily due to the upcoming lease expiration. Despite the impending closure, H&M has put efforts into mitigating the impact on its workforce. Many employees have already secured alternative roles through redeployment within the company, while others have found employment elsewhere or opted to depart voluntarily.
An H&M spokesperson stated, “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company. Having looked into the scope of our customer service set-up, increased competition in the market, our customers changing behaviours and expectations and operational costs, we have made the difficult decision to proceed with the proposed closure of our customer service site in Edinburgh by the end of the year.” Despite these efforts, approximately 150 employees will still be leaving the company by the end of the year.
The decision comes amid a broader context of slow sales for the H&M group. The company reported net sales of SEK 59 billion (approximately £4.35 billion) for the third quarter, covering June to August 2024, showing a slight decline from SEK 60.9 billion (approximately £4.5 billion) during the same period in the previous year.
The closure of H&M’s call center reflects broader market challenges and changing business needs.
