H&M has announced it will shut down its call centre in Edinburgh by the year’s end, resulting in an estimated 150 job losses. The closure follows a proposal shared with staff at the Waverley Gate office in August, with the company pointing to the expiration of the building lease in 2025, rising operational costs, and shifts in customer behaviour as key reasons. The company cited heightened competition and evolving service expectations as additional challenges prompting the decision, BBC Scotland reports.
Notice Period and Employee Reactions
According to BBC Scotland, employees were given a two-week notice period for their dismissals. Employees eligible for a longer notice period will receive compensatory pay in lieu. Some workers described the redundancy announcement as abrupt, stating that the meeting lasted only five minutes, leaving many in shock. Consultations between H&M and its employees were conducted from September to November, with the company noting that some job cuts were mitigated by offering affected employees alternative roles or supporting those who chose to leave.
Timeline for Call Centre Closure
The Edinburgh call centre is scheduled to stop operations on December 14, with the complete site closure slated for March 2025.
Government Appeal to Avoid Redundancies
Deputy First Minister Kate Forbes appealed to H&M to consider alternatives to job cuts if the call centre had to close. She met with company executives, advocating for any feasible measures to minimise redundancies. However, an H&M spokesperson explained that the closure was necessary, underscoring the importance of adapting to shifting market conditions, customer expectations, and cost structures.
Background on H&M’s Global Restructuring
Following a global shift to online shopping during the COVID-19 pandemic, H&M previously closed 250 stores worldwide. The company continues to evaluate its operations to ensure alignment with its goals, a spokesperson explained to BBC Scotland, indicating that Edinburgh’s closure reflects a broader strategic response to ongoing industry shifts.
