Shiseido to cut 1,500 job in Japan through anticipated retirement program

The Japanese cosmetics giant intends to transform its business in Japan. The plans includes an early retirement incentive plan for employees in Japan that is estimated to result in about 1,500 voluntary leaves, almost 4% of its global workforce.

 

 

As part of its transformation plan, Shiseido also wants to concentrate its activities on “brands, products, and touchpoints with high growth potential and profitability."

In particular, Shiseido wants to boost its online sales in Japan, increasing them to 30% of its national turnover, compared to barely more than 10% currently, through increased collaboration with e-retailers and improvement of its own e-commerce sites.

Shiseido Japan aims to optimize efficiency in terms of cost of goods sold, marketing investments, and other expenses. The company expects a cost reduction of 25 billion yen over the next two years.

Shiseido has reported a nearly 40% slump in earnings in 2023, impacted by China’s sluggish recovery post-Covid and a step decrease of its sales in travel retail.

For fiscal 2024, Shiseido has forecast its net income will grow by 1.1% to JPY22 billion (EUR 136.7 million at current exchange rates), and that revenue will grow by 2.8% to JPY1 trillion (EUR 6.2 billion).