H&M Group has announced that it is to reduce its workforce by around 1500 positions as part of its global programme to cut costs and improve its levels of efficiency.

The Swedish company is also looking at its administrative and overhead costs.

In a statement, H&M Group said the programme is expected to deliver annual savings of around SEK 2 billion which will become visible in the second half of 2023. It will also result in a likely restructuring charge of just over SEK 800 million in the fourth quarter of 2022.

Helena Helmersson, chief executive of H&M Group, said: “The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this. We will support our colleagues in finding the best possible solution for their next step.”

In addition to the H&M fashion retailer, the group operates the H&M Home, COS, Arket, Weekday, & Other Stories and Monki  brands.