H&M cuts 150 jobs in Edinburgh call centre closure

The retail giant confirmed plans to close its Edinburgh call centre

Fashion retailer H&M has confirmed it will close its Edinburgh call centre by the end of the year, with 150 jobs losses expected.

Workers at the company's Waverley Gate office were told in August of a proposal to shut the building due to the lease expiring in 2025.

H&M blamed increased competition, changing customer behaviours and operational costs for the closure.

Documents seen by BBC Scotland News showed that employees were given two weeks' notice of their dismissal, but workers entitled to more notice will be paid in lieu.

Staff previously told BBC Scotland News that the meeting to announce the redundancies was over within five minutes, leaving those affected in shock.

The company held consultations with employees between September and November this year.

H&M said the number of job losses had been reduced by people being offered alternative roles, finding other employment or choosing to leave voluntarily.

Operations in the call centre will cease from 14 December before the site closes in March 2025.

'Difficult decision'

Deputy First Minister Kate Forbes previously urged the company to avoid redundancies if they decided to close the centre.

She met senior management and asked them to consider all available options that could remove the need for redundancies.

A spokeswoman for H&M said: "We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company.

"Having looked into the scope of our customer service set-up, increased competition in the market, our customers changing behaviours and expectations and operational costs, we have made the difficult decision to proceed with the proposed closure of our customer service site in Edinburgh by the end of the year."

The firm shut 250 stores globally in the aftermath of Covid-19 outbreak, as the pandemic had moved more shoppers online.

A Scottish government spokesman said: “This is a concerning time for employees and their families.

"The Scottish government has engaged with H&M in an attempt to mitigate the impact of the closure and our Partnership Action for Continuing Employment service is already working with staff.”