Luxury cosmetics brand Sephora cuts jobs in China

Paris. Sephora, the beauty retailer owned by French group LVMH, is reducing its workforce in China, the company said on Wednesday, as consumers cut spending on creams and makeup in the world’s second-largest economy.

Sephora, which sells mostly high-end or “prestige” perfumes and makeup, previously had about 4,000 employees in the country, which has been one of the world’s fastest-growing beauty markets in recent years.

But high unemployment and a slumping property market have hit consumer confidence, with major cosmetics companies warning in recent weeks of a significant hit to their sales in China.

The deal would affect less than 3 percent of the company’s workforce, a company spokesman said, equivalent to fewer than 120 jobs.

“In response to the challenging market environment and to ensure our future growth in China, Sephora China is currently streamlining our organizational structure at our head office to ensure we have the right capabilities for long-term, sustainable growth,” the company said in a statement.

Sephora has around 350 stores in more than 100 cities in China and also sells products online.

Bloomberg had previously reported that the company was cutting hundreds of jobs, or about 10 percent of its staff in China, in both offices and stores.

The retailer is one of French luxury giant LVMH’s fastest-growing businesses in other markets, but has not fared as well in China, where a large share of beauty products are purchased on e-commerce platforms.