H&M relocating Southeast Asia regional HQ from S'pore to KL, 30% of regional headcount may be impacted: M'sian media

H&M has reportedly announced that it will be relocating its Southeast Asia headquarters from Singapore to Kuala Lumpur.

According to Malay Mail, citing "formal communications" to staff, the Asia-Pacific restructuring exercise will also eliminate approximately 30 per cent of its regional support workforce.

The majority of redundancies will supposedly take place in the Singapore office.

Out of a regional headcount of 256 for the former East Asia region, 78 positions will be removed, reported Malay Mail.

In response to Mothership's queries, a H&M spokesperson said, "Singapore remains an important market to us, and we will continue to have our office located in Singapore."

"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 spokesperson added that this is an "ongoing process."

Broader evolution of operating model

Malay Mail reported that the restructuring is part of a broader evolution of H&M's commercial operating model, which replaces the existing regions with four new continent categories.

The newly formed Continent Asia Pacific (APAC) will be based in Shanghai and will oversee five sales markets.

The head office for the Southeast Asia sales market will be located in Kuala Lumpur, while the Northeast Asia sales market will relocate to Tokyo.

APAC's continent portfolio includes India (hub in Bangalore), Australia and New Zealand (Sydney hub), and Greater China, which will share the Shanghai hub with the continent headquarters.

Calibration process

By May 21, 2026, staff will undergo a calibration process, and employees are required to complete an assessment survey nominating two priority roles.

Placement decisions based on 2025 contribution ratings and recent disciplinary records instead of standard CV submissions, reported Malay Mail.

Interviews and evaluations are scheduled between May 25 and Jun. 19, with management reportedly saying that employees will be informed of the final outcome no later than mid-June.

By Jul. 1, consolidated structure and staff relocations are expected to be operational.

Mutual separation agreements will be proposed for staff whose roles are eliminated or reduced, with separation packages communicated at a later date, reported Malay Mail.

Structural changes implemented on near-annual basis

According to Malay Mail, H&M's internal records show that structural changes are implemented on a near-annual basis.

While support functions in Singapore and Ho Chi Minh are being offshored and offices in Seoul and Manila are being downsized, the firm said all store-level operations and retail teams remain unaffected.

Malay Mail reported that the broader restructuring plan was initially referenced in an internal briefing on Apr. 16, 2026.

'Singapore remains an important market to us'

H&M said it is constantly working on improvements to adapt to its customers' expectations.

"As part of that, we regularly review how we work to ensure our Organisation remains flexible, efficient, and fast-moving."

The firm added that it will continue to maintain its retail presence in Singapore, reflecting its long-term commitment.

H&M said, "As this is an ongoing process, we have no further details to share."