H&M is cutting 76 corporate jobs at its Manhattan offices at 110 Fifth Avenue, trimming its local headcount as the fast fashion giant continues to shrink its brick and mortar footprint. The layoffs, set to hit this fall, are part of a wider corporate shakeup that H&M says is meant to streamline operations and cut complexity across the business.
What Was Reported
Crain's New York Business first flagged the move, reporting that H&M will eliminate 76 roles tied to its Fifth Avenue office. According to the outlet, the company is trimming parts of its United States corporate payroll after shutting down a number of underperforming stores, describing the cuts as part of a broader push to control costs and pare back office space.
What Filings Show
The company’s corporate spin is backed up by the paperwork. A WARN notice dated June 5 on the New York State Department of Labor dashboard lists the layoffs as starting Sept. 4 and identifies the 11th floor at 110 Fifth Avenue, where 246 workers are based, as the affected location, according to Retail Dive. The outlet quoted an H&M spokesperson saying the retailer must “continuously evolve our business to meet a changing customer landscape,” and that this round of cuts includes shifts in roles and team structures. The filing does not spell out which departments are on the chopping block or what kind of severance, if any, is tied to the cuts.
Why H&M Is Shrinking Its Footprint
H&M’s own six month report makes clear this is not just a New York story. The retailer trimmed its global store count, booked restructuring charges tied to organizational changes, and is steering more decision making closer to local markets, according to H&M Group. The company reported that its total number of stores was down roughly 3 percent year over year and that it was taking one time charges to simplify the business. A broader look at the strategy from Fast Company notes that H&M logged a net reduction of about 128 locations and has already signaled more closures are coming this year.
Local Impact
In Manhattan, the cuts chip away at a corporate office that helps support dozens of New York area stores and local vendors at a time when many retailers are rethinking pricey office leases and large in person fleets in favor of beefed up digital operations. Industry analysts have repeatedly pointed to cheaper online rivals and shifting shopping habits as the forces pushing chains like H&M to restructure. Coverage by TheStreet ties the chain’s wave of closures to intense ecommerce competition and a strategy to simplify its web of brands, which has helped drive down its global store count in recent quarters.
Legal Note
Under New York’s WARN rules, covered employers must give advance notice of mass layoffs and file those plans with the state, or risk penalties and potential back pay, according to the New York State Department of Labor. The agency says the goal is to give workers, local officials and workforce boards enough lead time to brace for the hit and roll out re employment services. In most qualifying cases, employers are required to provide 90 days notice before a plant closing or mass layoff that meets the thresholds laid out in state law.
H&M has not provided further details on which specific roles are being eliminated or what severance packages will look like, according to Retail Dive. This story will be updated if the company or state officials release additional information.
