L'Oréal denies claims regarding HK office layoffs

L'Oréal China has denied rumours that its Hong Kong office will merge with its mainland division, which could lead to over 200 employees being impacted in Hong Kong.

This came after local media such as HK01 and Sing Tao Headline reported that L'Oréal is merging its Hong Kong and mainland divisions, sacking over 200 staff with only a few frontline employees left to maintain daily operations. 

The impacted staff are scheduled to depart gradually by the end of September, said the reports. Meanwhile, a small number of staff are required to relocate to the Guangzhou office. Some employees described L'Oréal's approach as "generous", estimating that the severance packages would be favourable, but stating that the layoffs were occurring despite the company still being profitable.

In response, L'Oréal China told Chinese media outlet 新京報 that the above rumours are incorrect. It stated that the company will keep evaluating and optimising its organisational structure in both global and local markets to remain relevant and adapt to the evolving market environment and consumer needs.

L'Oréal China stated that it is transforming its operational model to strengthen synergy and mutual benefits between Hong Kong and mainland China, according to the report. The new structure will leverage Hong Kong's retail experience and Mainland China's digital and eCommerce capabilities to improve performance in both markets.

MARKETING-INTERACTIVE has reached out to L'Oréal for a statement. 

Established in 1983, L'Oréal Hong Kong has been operating in the region for over 40 years. It currently employs nearly 300 people, excluding frontline sales staff, according to HK01 and Sing Tao Headline. 

Back in 2020, L'Oréal Hong Kong reportedly laid off staff due to the pandemic's impact, with around 60 employees from the brand department being let go and asked to leave immediately. According to reports, L'Oréal Hong Kong informed employees via email that the market in Hong Kong was changing. Even without the COVID-19 outbreak, consumers had transitioned from in-store shopping to online shopping, resulting in certain positions no longer aligning with the company's future development.

L’Oréal organises its global portfolio of brands into four divisions: professional products division, consumer products division, L’Oréal Luxe and the dermatological beauty division, according to its website. Its brands include Kérastase, Lancôme, La Roche-Posay, and Yves Saint Laurent Beauty.

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