Sephora to cut jobs in China as slowdown deepens

The beauty retailer is cutting jobs in the face of a challenging Chinese market amid falling demand. According to the LVMH unit, "less than 3%" of its 4,000 employees in China will face layoffs.

Bloomberg previously reported that 10% of employees would be affected, but Sephora told AFP the move would not affect more than 120 jobs.

As China's economy slumps, the LVMH-owned company seeks to streamline its headquarters' organizational structure to ensure its "future growth in China." The retailer said it would provide compensation and career support services to affected employees.

Sephora has about 340 stores in China. Like other global cosmetics giants, the retailer is facing a slowdown in consumption in China, one of the world's largest markets for luxury goods and cosmetics. Many companies have said that the sharp drop in sales in China reflects broader economic woes as the country is in the grip of an unprecedented crisis in its massive real estate sector and consumption remains weak.

Last March, Sephora announced it would end all its online and offline operations in South Korea, where the beauty retailer faces stiff competition from established local players.