Cost cutting? This is what H&M, US food delivery firm DoorDash said as they plan to sack employees

The news of layoffs in major giants across various sectors is becoming more common with each passing day. First Facebook’s parent company Meta Platforms, then Twitter and now joining them are Swedish fashion giant H&M and US-based food delivery company DoorDash.And if you think the list ends here, you are mistaken. More in line are Google and HP who are reportedly planning layoffs too.

Swedish fashion giant H&M to sack 1500 employees globally

Swedish fashion company H&M has chosen to begin terminating 1,500 workers across the globe in order to save 2 billion Swedish crowns ($190 million) annually, making it the first major store in Europe to do so. The world's number two fashion shop is firing staff members in the midst of high inflation and rising costs brought on by the conflict between Russia and Ukraine which started in the month of February this year.

Currently, 155,000 people worldwide work at H&M. Reuters news agency reported H&M CEO Helena Helmersson as stating that the cost and efficiency programme that H&M has initiated involves reviewing the organisation.

She said that the company is very mindful of the fact that colleagues will be affected by this. As customers tightened their belts in September, H&M reported substantially lower-than-expected quarterly sales. It underscored the difficulty H&M has in competing with Zara, a more powerful competitor controlled by Inditex. Additionally, H&M is up against fierce competition from less expensive rivals and online-only firms. Primark, a British clothing store, has announced ambitions to grow and create 1,800 new jobs in Spain and Britain.

As per Reuters, Streeter of Hargreaves Lansdown said shoppers are showing signs of trading down and hunting out bargains and the pressure is on H&M to compete with chains seen as offering greater value, from Primark in high streets to Boohoo and Shein online. H&M stated that savings will begin to trickle in the second half of 2019, while it will incur a restructuring charge of 800 million Swedish crowns in the last three months of 2019.

US food delivery service DoorDash Inc to cut jobs too

Apart from H&M, US food delivery service DoorDash Inc has also said it is cutting about 1,250 jobs in an attempt to cut costs

Job cuts by other giants like Amazon, Meta and Twitter

H&M's employment cuts follow closely behind the global layoffs of IT workers by tech giants. Employees at Amazon, Meta, and Twitter have been let go as part of a wave of layoffs in the IT sector. On November 9, Mark Zuckerberg, the CEO of Facebook's parent firm Meta Platforms, announced the business's decision to let off more than 11,000 workers and cut its team size by around 13%. Additionally, Twitter lay off 50% of its workforce. Google and HP are now considering layoffs as well.

According to reports, Alphabet, the parent company of Google, plans to fire 10,000 "low performing" workers, or 6% of its staff. Enrique Lores, CEO of US IT giant HP, has stated that the business aims to decrease its headcount by 4,000 to 6,000 people over the next three years. Although these are challenging choices, he said, he is acting in the company's best interests.

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