The news: A difficult combination of soaring energy prices and slowing sales is driving H&M to lay off 1,500 of its roughly 155,000 employees to save 2 billion Swedish crowns ($190 million).
A tough environment: H&M is operating in a difficult environment as consumers in key markets across Europe pull back on discretionary spending amid soaring prices and surging energy costs.
Retailers have the unenviable task of finding ways to control their costs without significantly impacting the customer experience.
Cutting jobs: H&M is far from alone among European retailers turning to layoffs to protect its bottom line.
The big takeaway: European retailers face a host of concurrent, interrelated challenges. Consumers are pulling back spending at the same time that businesses’ costs are rising, while high interest rates are forcing them to focus squarely on their bottom lines rather than adopt longer-term perspectives.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.