Shiseido Americas Implements Layoffs Amidst Business Challenges

Shiseido Americas is undergoing a business transformation to return to growth and profitability, resulting in layoffs of an unspecified number of employees. The company cited high inflation and economic uncertainty as broader challenges impacting the beauty market in the US and globally. Shiseido's namesake brand and Clé de Peau Beauté posted gains in the first quarter, while Drunk Elephant fell over 60%. The layoffs are part of a wider trend in the industry, with other companies like Estée Lauder, Coty, and L'Oréal also cutting staff.

Shiseido Americas, a prominent player in the global beauty market, has announced significant layoffs as part of its ongoing business transformation to return to growth and profitability. The company cited high inflation and economic uncertainty as broader challenges impacting the beauty market in the U.S. and globally. The layoffs are part of a larger industry trend, with other major beauty companies also reducing their workforce.

According to a statement from Shiseido Americas, the company has eliminated certain roles and impacted a number of its employees. The company expressed gratitude to its departing colleagues and will provide them with transition support. The exact number of roles impacted has not been disclosed.

In the first quarter of 2025, Shiseido's namesake brand and Clé de Peau Beauté posted gains, while Drunk Elephant, a subsidiary of Shiseido, saw a decline of over 60%. This decline was a significant factor in the overall 19% drop in Shiseido Americas' performance in the region [1].

The layoffs at Shiseido Americas are not an isolated event. Other major beauty companies have also been reducing their workforce. Estée Lauder Cos. Inc. announced a reduction in headcount estimated to be as large as 7,000 as part of its "Beauty Reimagined" strategy [1]. Coty Inc. cut 700 jobs in April, and rumors circulated that L’Oréal was considering merging its Hong Kong and mainland China offices, which would affect 200 employees [1].

The broader global health and beauty market has been experiencing slower growth in 2024 due to high inflation, which has weakened consumer confidence and decreased spending on non-essential categories [2]. However, online sales have surged, driven by the integration of technologies such as artificial intelligence (AI) and augmented reality (AR) into the online shopping experience. The online health and beauty market is expected to grow at a compound annual growth rate (CAGR) of 5.7% by 2029 [2].

The current economic climate and the shift towards e-commerce have forced many beauty companies to reassess their strategies and reduce their workforce. Shiseido Americas, along with other industry giants, is navigating these challenges to secure the viability of their organizations.

References:
[1] https://wwd.com/beauty-industry-news/beauty-features/shiseido-americas-layoffs-1237984680/
[2] https://finance.yahoo.com/news/global-health-beauty-market-report-150100727.html