H&M is set to close its call centre in Edinburgh, affecting 150 employees by year’s end.
- This decision results from increased market competition, changing customer behaviour, and operational costs.
- Employees were informed in August and some have found new roles through redeployment or other employment.
- The decision aligns with H&M’s evaluation of its customer service setup and overall company goals.
- H&M Group experienced slow sales in the third quarter, contributing to this decision.
H&M has confirmed plans to close its Edinburgh-based call centre, resulting in the loss of 150 jobs by the end of the year. This move stems from a strategic evaluation influenced by heightened competition, evolving customer behaviours, and the need to manage operational expenditures.
Employees at the Waverley Gate office were briefed on the proposal in August, following the announcement of the lease expiration next year. While some have secured alternative employment or have been redeployed within the company, 150 individuals are expected to leave by year-end.
An H&M spokesperson explained, “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.”
The decision coincides with H&M Group’s report of slow sales in the third quarter. From 1 June to 31 August 2024, net sales reached SEK 59bn (£4.35bn), slightly lower than the SEK 60.9bn (£4.5bn) recorded during the same period in 2023.
The closure of H&M’s Edinburgh call centre is a significant move in response to ongoing market challenges and internal evaluations.
