Tens of thousands of layoffs could hit H&M employees as the coronavirus causes 'significant negative impact on sales'

• Tens of thousands of layoffs are potentially on the horizon for H&M workers.
• H&M said it experienced a "significant negative impact on sales" because of the coronavirus and is looking for ways to cut costs.
• H&M temporarily shut down 3,441 of its 5,062 locations. The company has temporarily shuttered all stores in the US, Germany, and the UK.
• Visit Business Insider's homepage for more stories.

H&M, one of the world's largest fashion retailers, is discussing temporary or permanent job cuts for workers at all levels because of financial setbacks caused by the coronavirus, the company announced Monday.

Sweden-based H&M has stores in over 74 markets, all of which are currently closed in the US, Germany, and as of last week, the UK. H&M temporarily shut down 3,441 of its 5,062 locations because of the virus but is still offering online sales in 50 of its markets.

Workers are likely to bear a significant brunt of the economic hardship caused by the coronavirus as H&M shutters stores worldwide in an attempt to lessen the spread of COVID-19, the disease caused by the coronavirus. H&M said it is experiencing "significant negative impact on sales" and temporary layoffs are being discussed as a way to mitigate losses.

While the company doesn't know the exact scope of the layoffs, tens of thousands are possible, and the company warned there could also be permanent layoffs. H&M said it's considering "the potential need to terminate employment" because of the scope of the COVID-19's impact.

The company is reviewing other ways to cut costs beyond staffing and said it was re-examining buying, investments, and rent. H&M also canceled its dividend proposal.

"We are doing everything in our power in the H&M group to manage the situation related to the coronavirus," H&M CEO Helena Helmersson said in a press release. "My hope is that we will be able to get operations up and running again as soon as possible."

But as soon as possible might not be soon enough for jobless workers, considering some projections estimate the spread of the virus could last for months.

H&M announced over the weekend it would use its supply chain to help provide protective equipment to hospitals and health care workers.

CNBC first reported on the possible layoffs.

SEE ALSO: Restaurant owners and employees across the country are raising tens of thousands of dollars online for laid-off workers amid the coronavirus shutdowns

READ MORE: The biggest mall operator in the US is closing all locations for 12 days to slow the spread of COVID-19

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