Shiseido Americas declined to say how many roles impacted: WWD

Shiseido Americas declined to say how many roles impacted: WWD

Shiseido Americas, a subsidiary of the Japanese cosmetics giant Shiseido, has announced a significant reduction in its workforce as part of a broader business transformation aimed at restoring growth and profitability. The company's interim CEO, Alberto Noé, stated that the decision to eliminate certain roles was necessitated by the challenging business environment, including high inflation and economic uncertainty [1].

The layoffs, which were first revealed in an internal memo and later confirmed by WWD, are expected to impact a number of employees across multiple businesses, functions, and locations. However, the exact number of roles affected has not been disclosed by the company. Noé noted that despite the company's best efforts, business performance has declined significantly in 2024, and the outlook for 2025 remains bleak [1].

Shiseido Americas is not the only beauty company facing headwinds. Last year, Estée Lauder Cos. Inc. unveiled a "Beauty Reimagined" strategy that included a reduction in headcount of up to 7,000 employees. In April, Coty Inc. cut 700 jobs. Rumors also circulated that L’Oréal was considering a merger of its Hong Kong and mainland China offices, which would affect 200 employees, although the company denied these claims [1].

The company's first-quarter financial results, released in May, showed a 19 percent decline in the Americas region, largely driven by the Drunk Elephant brand, which saw a more than 60 percent drop in sales. Conversely, Shiseido's namesake brand and Clé de Peau Beauté both posted gains in the low-single and high-teen percentage ranges, respectively [1].

Shiseido Americas has expressed gratitude to its departing colleagues for their contributions and has pledged to provide transition support to those impacted by the layoffs.

References:
[1] https://wwd.com/beauty-industry-news/beauty-features/shiseido-americas-layoffs-1237984680/