New Delhi, August 23: Sephora, the cosmetic retailer brand, reportedly laid off around 10 percent of its employees in China. As per reports, the job cuts come as Sephora faces a challenging market environment and decided to streamline its operations. The decision of layoffs might enhance its future growth and sustainability in China.

Since entering China in 2005, Sephora has grown and now has around 300 stores in the country. The brand has been reportedly facing difficulties in growing its presence in China. The company believes that expanding in China is essential to achieve its goal of reaching a global sales target of USD 21.3 billion. The company recognises the importance of the Chinese market and is working towards overcoming the challenges to achieve its sales target. Bank of Queensland Layoffs: Aussie Bank To Lay Off Around 400 Employees Amid Restructuring Measures.

As per a report of Bloomberg, Sephora has laid off approximately 10 percent of its staff in China. These layoffs can be seen as part of the company's strategy to manage costs and improve efficiency. The job cuts include both office and store employees, as per a report of CNBC. It follows the appointment of Ding Xia, former Nike Inc. Asia e-commerce chief, as Sephora's new Greater China head.

The layoffs have impacted around 400 out of over 4,000 employees. Additionally, senior executives, such as the country leads for retail and e-commerce, have also reportedly left the company. The Sephora spokesperson reportedly said, “severance packages, compensation and career support services” are being provided to those impacted. Mastercard Layoffs: Financial Service Company To Lay Off 3% of Its Employees Globally Amid Restructuring Efforts.

Sephora has been reportedly struggling to expand in China despite being one of LVMH’s biggest brands. As per reports, the brand has suffered significant losses at around USD 46 million in 2022 and 2023. Sephora offers a wide variety of western cosmetics and personal care products. These items are often priced higher compared to local Chinese brands that are becoming popular. These local brands are gaining popularity because they are more specifically designed to the preferences of Chinese customers.

(The above story first appeared on LatestLY on Aug 23, 2024 06:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).