The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale Of Other Goods In Specialised Stores 47.71 - Retail Sale Of Clothing In Specialised Stores
492 jobs Number of planned job losses
Announcement Date
26 January 2024
Employment effect (start)
18 October 2024
Foreseen end date
Description
H&M, the Swedish multinational clothing retailer, has announced the opening of a collective dismissal procedure, citing organisational and economic reasons. The procedure will initially affect 588 employees as a result of the closure of 28 stores located in different Spanish cities.
The company has justified the closure of these 28 shops by the need to adapt its portfolio to new consumer habits. According to the trade unions, this measure is 'too aggressive', suggesting the possibility to find alternative solutions that do not involve such a massive job loss.
According to existing legislation applicable from 2023, in the event of workplace closures, the company must give formal notice to the labour authority at least six months in advance before the negotiating table is set up, sending a copy to the representative trade unions.
A previous restructuring process was recorded in the ERM database in 2021, with 349 job cuts H&M-2021-ES
Updated (18 October 2024): The Spanish trade unions UGT and CCOO have finalized an agreement for the Employment Regulation File (ERE) which will impact 492 personnel at H&M. This agreement, signed on 17 October 2024, states that the company's final proposal has reduced the impact of the ERE from the initially suggested 588 layoffs. Compensation for those affected ranges between 45 and 33 days' pay for each year worked, capped at 24 monthly payments, inclusive of an age-related bonus. This bonus will be EUR 2,500 for up to five years of service, EUR 3,500 for a tenure of up to 10 years, and EUR 4,500 for those who have been with the company for more than a decade. The agreement also permits switching between affected employees wishing to remain and those voluntarily wanting to depart, in addition to a support and outplacement plan
Eurofound (2024), H&M, Internal restructuring in Spain, factsheet number 200725, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/200725.
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