Yesterday, it was reported that L’Oréal Hong Kong recently announced a major restructuring initiative involving the merger of its operations with the Mainland division. This decision will result in the layoff of more than 200 employees. The restructuring was announced at the end of June, marking a strategic shift for the subsidiary of L’Oréal Group, which has operated in Hong Kong since 1983. Affected employees have received termination notices, commonly referred to as “big envelopes.”
L’Oréal Hong Kong currently employs nearly 300 staff members (excluding frontline sales personnel). Following the merger, the company plans to retain only a small number of employees to manage essential operations and maintain communication with frontline staff. According to reports, a source familiar with the affected employees stated that despite the layoffs, the company remains profitable. Some of the impacted employees may be offered transfers to the Guangzhou office, but opportunities for relocation are limited.
The departure process for affected employees is expected to be completed by the end of September. A source close to the matter cited L’Oréal’s past practices and expressed confidence in the company’s reputation for fairness in handling severance arrangements.
This is not the first time L’Oréal Hong Kong has faced layoff rumors. Last week, media reports claimed that L’Oréal Group would lay off as much as 90% of its staff in Hong Kong.
In response to these rumors, L’Oréal China told CHAILEEDO that the information was inaccurate. The company stated, “In order to effectively respond to the increasingly integrated regional market landscape and evolving consumer patterns, we are undergoing a transformation and building a new operational model to enhance synergies and achieve mutual benefits between our Hong Kong and Mainland China organizational structures.”
