Hundreds of jobs are being affected at Monki’s head office in Gothenburg following plans of a merger between the brand and Weekday.
H&M Group, which owns the two fashion retailers, has unveiled plans to merge the brands, in a bid to create an “umbrella of a new youth destination”, which also includes the revival of Cheap Monday, which shut its doors in 2019.
According to the group, the move would “leverage customer synergies” and reduce administration and operational costs. It will also free up resources to further focus on developing the brand experiences and a strengthened overall offer.
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As a result, the Monki head office in Gothenburg will close, “which will regrettably affect Monki employees”, the retailer said. Instead the head office for the combined brands will be based in Weekday’s current site in Stockholm, Sweden.
The company added that everyone in the team “will be supported to apply for a role within the new organisation, or to a continued career elsewhere within or outside the wider H&M group”.
H&M group head of portfolio brands Anna Attemark said: “While looking forward to having the new organisation up and running, we remain humble for the changes this entails for some of our employees.”
However, according to the group the organisational changes will come into effect during the coming months.
The news comes as in November last year, H&M announced plans to cut 1,500 jobs from its global workforce as part of a major restructuring programme to cut costs after sales in Europe dropped.
This comes as gross profits in the third quarter sunk almost 90% to £42 million.
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