Yesterday, according to report, Shiseido Americas is set to implement major layoffs as part of a sweeping cost-cutting initiative, marking another blow to the struggling beauty sector. In an internal memo shared with staff on Wednesday, interim CEO Alberto Noé announced a “wide-ranging and significant reduction” to the U.S. workforce, citing persistent business challenges and a deteriorating outlook for 2025.
The Japanese beauty conglomerate—parent company to prestige brands like Nars and Drunk Elephant and fragrance licensee for Tory Burch and Narciso Rodriguez—confirmed the layoffs to the media, though it declined to disclose the number of roles affected. The company said employees impacted by the cuts would receive transitional support.
“Shiseido Americas finds itself deeply challenged on multiple fronts,” Noé wrote. “Despite our best efforts and hard work, business performance has declined significantly through 2024, and the 2025 outlook remains bleak.”
The move aligns with broader industry trends, following recent headcount reductions at Coty and Estée Lauder Companies as beauty giants recalibrate in response to cooling demand and macroeconomic uncertainty.
Shiseido’s performance has been under intense pressure. In its first-quarter 2025 earnings released in May, the group reported an 8.5 percent decline in net sales, with Drunk Elephant plummeting 65 percent year-on-year. The company continues to face headwinds from a weakened Chinese market and slowing demand for its core offerings.
Alberto Noé, previously head of Shiseido’s EMEA operations, assumed the role of interim CEO of the Americas in April after the departure of Ron Gee. The company employs over 2,000 people across its U.S. and Canadian facilities, with its regional headquarters in New York City.
