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(C): Twitter
The beauty industry in Hong Kong is in the process of going through fundamental changes as big cosmetics companies are declaring mass layoffs. Estee Lauder, L’Oréal, and Shiseido are the top beauty brands, which know difficulty times because they have already implemented a job cut in their operation in Hong Kong. The aspect of the beauty industry layoffs can be seen as a wider economic trend and attempts to restructure business by thousands of workers in the region.
Much of the cosmetics layoffs, experienced so far, have come as a surprise to many workers since they have been regarded as secure working havens in the retail and distribution of beauty products sector in Hong Kong. The layoff will be a dramatic turn toward the way Asian strategy should be implemented by these big beauty houses.
Estée Lauder Leads Job Cuts with 100 Position Eliminations
The leading company to give the first big step was Estee Lauder in April 2024 by reducing some up to 100 jobs in Hong Kong as part of its strategy of integrating its business. The American beauty giant has integrated its Hong Kong office with its employees in Taiwan resulting in a work force of around 1,300 workers. This merger was guided by an objective of streamlining operations in order to cut costs as it existed in a different market.
The Estee Lauder factory closures not only sanctioned four manufacturing facilities but also two retail stores in Hong Kong in the current year, although no imminent closure of other stores of the company is reflected in the corporate sources. At the moment, there are 21 stores working within the Hong Kong region owned by the company, compared to its former presence. The restructuring of these works in the Estee Lauder beauty industry is all part of an overall global challenge of ensuring brands can remain competitive.
Nevertheless it is found that Estee Lauder is not going to quit the Hong Kong market despite its decision to go ahead with the cosmetics layoffs as part of the correction and not a departure of Hong Kong. It is easy to see how the company is trying to balance between ensuring that cost does not spiral out of control and the need to be visible in the market as it decided to retain its retail presence but minimize the administrative staff.
L’Oréal and Shiseido Follow with Additional Layoffs
In response to Estee Lauder, French beauty giant Loreal disclosed its intention to make more than 200 employees lose their jobs in Hong-Kong. The L’Oréal Lays off are one of the biggest job reductions in the beauty industry in the recent past. There have been no extensive explanations as to the layoff of the workforce by the company, but experts within the industry indicate that it is all a part of the world-wide efficiency programmes.
Personnel change is another strategy, which Japanese beauty company Shiseido has embarked on in the Hong Kong division but the figures of how many positions will be changed are not clear so far. The Shiseido layoffs increase the pattern of the beauty industry layoffs that impact the cosmetics industry of the region.
