H&M reportedly shifting South-east Asia HQ to Kuala Lumpur amid regional restructuring

H&M has announced a major restructuring of its Asia-Pacific operations, including the relocation of its South-east Asia regional headquarters from Singapore to Kuala Lumpur and the elimination of approximately 30 per cent of its regional support workforce.

The changes were first reported by Malaysian media outlet Malay Mail on 13 May 2026, with the report stating that the decision had been formally communicated to employees on 11 May.

Under the restructuring, 78 positions will be removed from the former East Asia regional workforce, which currently consists of 256 employees. Most of the redundancies are expected to affect staff based in Singapore.

The restructuring forms part of a broader overhaul of H&M’s commercial operating model, replacing existing regional layers with four newly established continental divisions.

New APAC structure based in Shanghai

Under the revised structure, the newly created Continent Asia Pacific (APAC) division will be headquartered in Shanghai and oversee five sales markets across the region.

The South-east Asia sales market headquarters will move to Kuala Lumpur, while the Northeast Asia sales market will be relocated to Tokyo.

The broader APAC portfolio will also include India, managed from Bangalore, Australia and New Zealand from Sydney, and Greater China from Shanghai alongside the continental headquarters.

According to internal timelines, employees will undergo a calibration process by 21 May 2026.

Staff members have been instructed to complete assessment surveys nominating two preferred roles within the new organisation. Placement decisions will be determined using 2025 contribution ratings and recent disciplinary records instead of conventional curriculum vitae submissions.

Interviews and staff evaluations are scheduled to take place between 25 May and 19 June.

Management has informed employees that final outcomes are expected to be communicated no later than mid-June, while the consolidated regional structure and staff relocations are targeted to become operational by 1 July 2026.

Separation arrangements and downsizing

For employees whose roles are eliminated or reduced, H&M said mutual separation agreements would be proposed if suitable alternative positions could not be identified within the reorganised structure.

Details regarding compensation and separation packages have yet to be disclosed.

Internal records cited in discussions surrounding the restructuring indicated that H&M has implemented similar regionalisation exercises on a near-annual basis.

While support functions in Singapore and Ho Chi Minh City are reportedly being offshored, offices in Seoul and Manila are also expected to face downsizing measures.

The company stated, however, that retail operations and store-level teams across affected markets would remain unaffected by the restructuring exercise.

The broader restructuring initiative had previously been referenced during an internal company briefing held on 16 April 2026.

Online discussions focus on Singapore costs

Online discussions on Reddit following reports of the restructuring largely centred on rising operating and labour costs in Singapore.

Some commenters speculated that multinational corporations increasingly view Malaysia as a lower-cost alternative for support and back-office operations.

One commenter described the relocation trend as “totally makes sense”, claiming a friend employed in support credit control at an international recruitment firm had been laid off after nearly half the department was cut.

The commenter alleged that more than 200 jobs from the department were transferred to Kuala Lumpur, where the company subsequently hired more than 300 employees while reducing operating costs by approximately 50 per cent.

Other commenters claimed companies could potentially halve staffing expenses by expanding operations in Kuala Lumpur instead of Singapore.

Broader concerns also emerged regarding the viability of physical retail businesses and middle-market consumer brands in Singapore.

Some participants pointed to increasing competition from e-commerce platforms including Shopee, Taobao and Shein as additional pressure on traditional retailers.

A smaller group of commenters argued that H&M’s restructuring reflected profit-maximisation efforts rather than financial distress, while others viewed the move as another indicator of weakening demand for traditional fast-fashion retailers in Singapore.