Not only has Sephora, the cosmetics retailer been struggling with its operations in China, some of its senior executives have also quit, adding to its woes. The company is reportedly reducing its workforce in China by three per cent. Those in the office and store have been most impacted, while the other employees have also been asked to consider resigning.
On the whole, about 10 per cent of the 4,000-strong Chinese workforce may be impacted.
It hasn’t been long since Sephora appointed Xia Ding as the managing director of Greater China. At the time of her appointment in April 2024, it was hoped that Ding, who is known for her skills in building and sustaining profitable businesses, would push Sephora Greater China towards growth and profits. Looks like Ding hasn’t been able to turnaround Sephora’s fortunes after all. She was once head Asia e-commerce operations for Nike.
These job cuts, according to the company, are part of its efforts to streamline its organisational structure at the head office and focus on long-term growth and sustainability.
Sephora has already discontinued operations in Taiwan and South Korea. Although Sephora raked in the maximum revenue after Louis Vuitton for its owner, LVMH in the US, Europe, and the Middle East, it has failed to perform as well in China.
The brand reportedly incurred losses to the tune of $46 million over two years, that is, 2022 and 2023.
