H&M has announced that it is reducing its workforce to cut costs across the business.

The fast fashion retailer said that it would get rid of around 1,500 roles in total, but did not specify where jobs would be axed.

The retailer said that the move is part of a global programme to drive down costs and improve efficiency, with the initiative relating to administrative and overhead costs.

The company says that the job cuts would provide an annual saving of roughly £160 million.

“The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this,” said Helena Helmersson, chief executive, H&M. “We will support our colleagues in finding the best possible solution for their next step.”

The job cuts come after the retailer saw sales drop by more than anticipated in its latest financial results. Analysts had predicted sales to decrease by just over one per cent, but they were down by four per cent.

H&M also suffered losses earlier this year following its decision to permanently withdraw operations from Russia. The wind-down of the business cost the company around £160 million.

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