Sephora cuts 10% of staff in China

Over 4,000 employees in China are impacted.

Sephora, owned by luxury giant LVMH, is cutting hundreds of jobs in China as it tries to reverse its financial struggles in the world's second-largest economy, Bloomberg reported.

The job cuts affect both office and store staff, with approximately 10% of the company’s over 4,000 employees in China impacted, according to individuals who requested anonymity due to concerns over potential backlash. 

Additionally, some senior executives, including the heads of retail and e-commerce in the country, have also exited the company.

The report said that the restructuring follows the appointment of Ding Xia, former Nike Inc. Asia e-commerce chief, as Sephora's new Greater China head. The move is part of the brand’s strategy to regain its footing in the Chinese market, which is crucial for LVMH’s goal of achieving €20b ($21.3b) in global sales.

The company’s struggles in China highlight the difficulties foreign brands face in capturing market share in a rapidly changing consumer landscape, where local competitors and economic uncertainties pose significant challenges.