Fashion retailer H&M has reportedly asked regional employees across East Asia, including staff based in Singapore, to reapply for their positions as part of an ongoing restructuring exercise.
According to reports, workers who fail to secure a role during the process may eventually leave the company through “mutual separation” arrangements that comply with local labour laws. However, no official retrenchments have been confirmed at this stage as the exercise is still underway.
The move has sparked uncertainty among employees after reports emerged that only 178 positions are being made available across the region. Prior to the restructuring, H&M Group reportedly employed around 368 staff in Singapore across its brands, including H&M, COS and “& Other Stories”.
Roles Moving Out of Singapore
Several employees told local media that many available positions are now being shifted to regional offices in cities such as Kuala Lumpur, Manila and Ho Chi Minh City. Out of the reported 178 openings, only four are expected to remain based in Singapore, including legal-related functions.
Staff were also reportedly required to undergo a “calibration” exercise, where employees needed to complete surveys and nominate themselves for up to two preferred roles. Performance reviews, contribution ratings and disciplinary records may reportedly be used to assess placements.
Interviews and evaluations are expected to continue until mid-June, with restructuring decisions scheduled to take effect from Jul. 1.
Some employees are said to be weighing relocation options carefully, especially as countries such as Malaysia, Japan and South Korea may involve different tax structures and compensation packages compared to Singapore.
H&M Says Singapore Still Important Market
Responding to media queries, H&M stated that the company regularly reviews its operations to remain “flexible, efficient and fast-moving” in response to evolving customer expectations.
The retailer stressed that Singapore remains an important market and confirmed that its office operations and retail presence in the country will continue.
“We are fully committed to supporting all of our colleagues in any organisational changes and will continue to fulfil our obligations according to local labour law requirements,” the company said.
The company added that it would not be sharing further details for now as the restructuring remains an ongoing process.
Earlier Reports Mentioned Southeast Asia HQ Shift
The latest development follows earlier reports claiming that H&M may relocate parts of its Southeast Asia headquarters operations from Singapore to Kuala Lumpur as part of a broader Asia-Pacific restructuring effort.
Reports also suggested that up to 30 per cent of the company’s regional support workforce could potentially be affected during the exercise.
The restructuring comes as global retail and fashion companies continue streamlining operations amid rising operational costs, changing consumer spending habits and increasing investment into digital retail transformation and artificial intelligence-driven business systems.