The world’s second-largest fashion retailer, H&M (ST:HMb) announced on Wednesday that it will cut about 1,500 jobs to cut costs in the face of declining demand as consumers face rising inflation.

The Swedish company, which employs about 155,000 people, launched a plan to save SEK 2 billion a year.

H&M said in a statement that it will post a restructuring charge of SEK 800 million ($75.80 million) in the fourth quarter.

“The cost and efficiency program we have launched involves overhauling the company, and we are well aware that there will be employees affected by the program,” CEO Helena Herlmersson said.

“We will support our employees in finding the best possible solution in their next step,” he added.

The company is expected to start posting profits from the second half of next year, according to H&M.

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