Today, it was reported that Chanel has intensified layoffs in the Chinese market. Without any prior notice or warning, employees were invited into a “small black room” and asked to directly sign termination agreements.
According to media reports, earlier layoffs were mainly concentrated on non-renewal of contracts upon expiration and natural attrition under performance improvement plans (PIP). However, the latest round has begun targeting employees with open-ended contracts, some of whom have served the company for as long as 10 years. Under the current circumstances, it is evident that Chanel China is no longer satisfied with relying on “natural attrition,” but is instead adopting more forceful, formal layoff measures.
Previously, media revealed that Chanel’s China headquarters planned to reduce headcount from 462 to 373 within the year, covering nearly all internal functions including technology, digital, and human resources—a cut of about 20%. The brand reportedly employs around 4,200 people in China, in addition to about 700 outsourced staff.
Sources disclosed that Chanel’s management is currently reviewing its business and intends to evaluate both the luxury retail division and the beauty & fragrance unit, with plans for significant layoffs in both.
In 2024, Chanel’s luxury business in China reportedly plunged 20%. The company reviews business performance quarterly and may lay off up to 1,000 employees in that division. The beauty and fragrance division, which performed slightly better, may see up to 500 job cuts.
