SINGAPORE: Staff across Swedish fashion retailer H&M's East Asia regional market – which includes Singapore – are being asked to reapply for roles, with those who are unsuccessful facing "mutual separation" in line with local employment laws.It is not clear which markets and how many employees are affected. Based on H&M Group's latest annual report, it had 368 employees in Singapore last year across several brands including H&M, COS and & Other Stories.Staff can reapply for 178 available roles, said three employees who spoke to CNA on condition of anonymity. So far, no one has been laid off as this process is ongoing, and the restructuring and staffing decisions will take effect by Jul 1.Of the roles available, 80 are in H&M's Southeast Asia offices – mostly in Kuala Lumpur, Manila and Ho Chi Minh City, an employee said. Four of these roles, including legal functions, will be based in Singapore.
A second employee told CNA that roles formerly in Singapore are being moved to Kuala Lumpur and Manila.Staff were officially informed of H&M's plans to restructure, including moving its Southeast Asia headquarters from Singapore to Kuala Lumpur, on May 11. In the same announcement, H&M employees across East Asia were asked to take part in a staff "calibration" exercise by May 21, the employees told CNA.This involves completing a survey and nominating themselves for two available roles. Contribution ratings and recent disciplinary records will be used to determine their possible placements in the company.Employee interviews and evaluations will be scheduled until Jun 19, and they will get their results by mid-June.The restructuring was also discussed at earlier town halls with the global teams, said one of the employees.Since they are being asked to reapply and re-interview for similar roles in the organisation, the process feels "a bit too drawn out", said the employee, who spoke on condition of anonymity. "You essentially know that roles are being cut, but you don't know whether it's going to be you. And that uncertainty is probably causing more anxiety with employees."This person plans to decide whether to relocate based on the details of the new compensation package if they land a new role.The other countries where positions are available, such as Malaysia, Japan and South Korea, have higher tax rates than Singapore, the employee noted, adding that this may make any offer less attractive. "Whichever option you choose, you're either facing currency deflation or a higher tax rate."H&M did not confirm the relocation and layoffs when responding to CNA's queries on May 12."We regularly review how we work to ensure our organisation remains flexible, efficient, and fast-moving," said the company."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 did not respond to further queries on May 18 about the staff "calibration" exercise.
