Beauty retailer Sephora cuts jobs in China as market collapses By Reuters

PARIS (Reuters) – LVMH-owned beauty retailer Sephora is cutting its workforce in China, the company said on Wednesday, as consumers cut spending on creams and makeup in the world’s second-largest economy.

Sephora, which sells mostly high-end or “prestige” perfumes and eye makeup, previously had about 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 slumping housing market have hurt consumer confidence, with top cosmetics firms warning in recent weeks of a significant impact on their sales in China.

The operation would affect less than 3 percent of the workforce, a company spokesman said, the equivalent of fewer than 120 jobs.

“In response to the challenging market environment and to ensure our future growth in China, Sephora China is currently streamlining its organizational structure at our headquarters to ensure we have the right capabilities for long-term sustainable growth,” the company said in a statement. .

Sephora has about 350 stores in more than 100 cities in China and also sells products online.

Bloomberg previously reported that the firm is cutting hundreds of jobs, or about 10 percent of its staff in China, in both offices and stores.

The retailer is one of French luxury giant LVMH’s fastest-growing businesses in other markets, but has not fared so well in China, where much of its beauty products are bought on e-commerce platforms.