After information started circulating earlier this week that L’Oréal is contemplating merging its Hong Kong workplace with its Mainland China operations, which might end result within the layoff of over 200 staff, the French magnificence firm issued a press release refuting the claims.
“The latest media report concerning L’Oréal Hong Kong’s job lower info is inaccurate,” a Chinese language firm consultant instructed WWD in an e-mail.
“Hong Kong and the neighbouring cities within the Larger Bay Space are more and more interconnected. To capitalize on the built-in market ecosystem and shifting client dynamics, we’re remodeling to a brand new and fashionable group construction that drives mutual advantages and stronger synergy between our Hong Kong and Mainland organizations,” the corporate added within the assertion.
L’Oréal added that the brand new group will assist create a synergy between “Hong Kong’s retail excellence and Mainland China‘s sturdy capabilities in digital and e-commerce.”
Native media reported that the corporate notified staff on the finish of June that its Hong Kong division will merge with its Mainland China operations. It was reported that over 200 jobs will probably be slashed by the top of September. A lot of staff will probably be relocated to close by Guangzhou, whereas just a few frontline staff will probably be left to take care of primary operations.
A Hong Kong worker instructed HK01, an area information group, that the corporate’s Hong Kong operations are worthwhile and the severance package deal tends to be “beneficiant,” based mostly on precedent.
L’Oréal’s Hong Kong division was established in 1983 and presently employs round 300 individuals, excluding retail personnel, in response to HK01.
Dealing with a difficult native market, the French magnificence big is aiming for round 5 % progress in China this 12 months, the corporate’s president of North Asia and chief govt officer of L’Oréal China Vincent Boinay unveiled at a Shanghai convention this March.
The corporate stated that China was barely higher than foreseen in its newest first-quarter 2025 interval. In the meantime, the corporate’s travel-retail Asia enterprise stays extremely detrimental in sell-out, each on the duty-free island of Hainan, China, and in South Korea.
