Global Beauty Giants Slash Jobs — China No Longer Exempt

Global beauty conglomerates are undergoing a strategic shift—and with it, deep cost-cutting measures that have placed “layoffs” squarely in the spotlight. This wave of restructuring is no longer limited to Western headquarters. China, once the untouchable engine of growth, is now also feeling the effects.

Over the past weeks, social platforms like Xiaohongshu and Instagram have been abuzz with reports that L’Oréal is laying off as much as 95% of its Hong Kong workforce, retaining only a skeleton team to maintain minimal operations. On July 2, L’Oréal China refuted the figure, calling it inaccurate and clarifying that the changes were part of a new operating model meant to enhance synergy between the Hong Kong and mainland China teams. The company said impacted employees would be offered internal transfers. However, by July 8, local media in Hong Kong reported that the Hong Kong office would be merged with the mainland division, affecting more than 200 people. L’Oréal has yet to confirm the exact number but has not denied the layoff itself.

This is L’Oréal’s second China-related restructuring this year. In April, amid a prolonged slump in the travel retail sector, reports emerged that the group had cut up to 50% of its China travel retail team. Though L’Oréal disputed the percentage, the layoffs did occur, with affected employees reportedly receiving an “N+5” compensation package.

L’Oréal isn’t alone. At least five major international beauty players have downsized their China teams in recent months, as global headcounts are rebalanced under pressure from shrinking margins, shifting consumer behavior, and geopolitical headwinds.

In April, Coty announced it would cut 5% of its global workforce—about 700 employees—citing the need to adapt to a new landscape shaped by tariffs, war, and evolving customer demands. While the company has repeatedly emphasized China’s strategic importance, it has not disclosed whether its China operations will be affected. Still, internal resource allocation is under review.

Estée Lauder, which has faced growing pressure in Asia—especially in China—announced in February that it would cut between 5,800 and 7,000 jobs globally through FY2026, with a full restructuring to be completed by FY2027. While specific China workforce details were not disclosed, industry insiders widely anticipate downsizing.

Shiseido has also been quietly adjusting its China strategy. The company has denied undertaking mass layoffs, stating that only minor organizational changes were made. However, in early 2024, it introduced a new brand portfolio strategy and organizational structure, and in April, it merged its China and travel retail units to ensure long-term profitability and sustainable growth.

Sephora China was rumored to have trimmed its workforce last year to offset retail operational pressures, while Unilever announced last July it would eliminate a third of its European roles—roughly 3,000 jobs—by the end of 2025. Though China was not specifically mentioned, Unilever’s ongoing product and team restructuring in the market suggests broader belt-tightening is underway.

The trend is clear: a global wave of beauty layoffs is moving eastward, and even markets once considered “immune” are now vulnerable. Faced with stagnant revenues and increased volatility, beauty giants are pivoting toward smaller, more agile operations focused on predictable returns. China, though still critical, no longer enjoys immunity from cuts. The age of unchecked expansion is officially over.