Recently, there have been reports that Shiseido China will cut 40% of its workforce. It is reported that as of the first half of 2023, Shiseido had nearly 8,000 employees in China. If we calculate based on this number, the number of people affected by this deployment will exceed 3,000.
Some netizens believe that the rumors of Shiseido China may be related to poor performance. Financial reports show that Shiseido Group’s cumulative sales for the first three quarters were ¥7224.17 billion ($49.63 billion), a year-on-year decrease of 5.3%; operating profit was ¥25.826 billion ($177.5 million), a year-on-year decrease of 27.6%.
In response to the related rumors, Shiseido China responded to the media by stating that the rumors were inconsistent with the facts. Shiseido China stated that it would implement a new brand portfolio strategy starting in 2024 to strengthen its business foundation. Accordingly, internally, a more integrated and agile organizational structure is being created to further promote synergy. The adjustment of the organizational structure only involves minor adjustments to related job positions.
Previously, Shiseido also issued a statement on its official website, stating that as of January 1, 2024, it would undergo some structural adjustments and personnel changes. For example, it will establish a Value Creation Strategy Headquarters and a Corporate Governance Department this year. It will also establish the “Global Brand Value Development Center” and the “Global Product Value Development Center” as part of the Brand Value Development Research Institute. Additionally, the previously named D&I Strategy Promotion Department will be renamed the DE&I Strategy Promotion Department.
