Sephora is cutting jobs in China as it struggles to gain a stronghold in the world's second-largest consumer market.
The prestige beauty retailer confirmed it will be streaming by 120 positions, approximately 3% of its China-based 4,000 workforce, with a focus on its headquarter team.
Bloomberg previously reported that Sephora has let go 10% of its China-based office and store employees.
The media company also claimed that the LVMH-owned store chain had persuaded some people to resign.
Sephora expanded into China in 2005 and has opened more than 300 stores in the country.
The job losses follow the appointment of a new Managing Director for Sephora's China division.
Xia Ding joined Sephora in April from Nike and has been tasked with boosting the business.
“In response to the challenging market environment and to ensure our future growth in China, Sephora China is currently streamlining our organisational structure in our head office to ensure we have the right capabilities for long-term sustainable growth,” the company said in a statement.
Sephora sells predominantly Western luxury beauty brands which are typically more expensive than the local products that are increasing in popularity among Chinese consumers.
The retailer's China woes are not unique. Coty, L'Oréal and Estée Lauder Companies (ELC) have struggled to combat a long-term sales slump in the region.
ELC reported a 2% decline in sales for 2024 which reflected an "ongoing softness in overall prestige beauty in mainland China and a decline in Asia travel retail".
L'Oréal highlighted that its sales fell in the "depressed beauty market in mainland China" in Q2 2024, most notably its luxury business which includes Prada and Lancôme.
Coty, meanwhile, noted that its luxury and mass brands struggled in China in 2024 but claimed that sales "were lower due to high prior year comparisons and a very gradual market recovery there".
However, Sephora has struggled to gain momentum in other key Asian beauty markets.
The French company shuttered its South Korean business in May after five years in the country.
Analysts said Sephora failed to adapt to the Korean market by not offering K-beauty products among its US and European portfolio.
