Beauty retailer Sephora cuts China jobs as market slumps
9:03 am Wednesday, August 21st, 2024
PARIS (Reuters) – LVMH-owned beauty retailer Sephora is cutting its workforce in China, the company said on Wednesday, as consumers curb their spending on creams and make-up in the world’s No. 2 economy.
Sephora, which sells largely high-end, or “prestige”, perfumes and make-up, previously had around 4,000 employees in the country, which has been one of the world’s fastest growing beauty markets in recent years.
But high unemployment and a slump in the property market have hit consumer confidence, with leading cosmetics firms all warning in recent weeks of a significant impact to their China sales.
The operation would impact less than 3% of the workforce, a company spokesperson said, equivalent to fewer than 120 jobs.
“In response to the challenging market environment and to ensure our future growth in China, Sephora China is currently streamlining our organizational structure in our head office to ensure we have the right capabilities for long-term sustainable growth,” the company said in a statement.
Sephora has around 350 stores in more than 100 cities in China and also sells products online.
Bloomberg had earlier reported the firm was cutting hundreds of jobs, or around 10% of its China staff, both in offices and stores.
The retailer is one of French luxury giant LVMH’s fastest growing businesses in other markets but it has not performed so well in China, where a large share of beauty products are bought on ecommerce platforms.
(Reporting by Dominique Patton; Editing by Alison Williams)
