Japanese cosmetics company Shiseido is planning to lay off a “significant” number of employees at its Americas business, the Business of Fashion reported.

In an internal memo sent to staff, Alberto Noé, interim CEO of Shiseido Americas, said the company would undertake a “wide-ranging and significant reduction”to its workforce.

“Shiseido Americas finds itself deeply challenged on multiple fronts,” Noé said in the memo. “Despite our best efforts and hard work, business performance has declined significantly through 2024, and the 2025 outlook remains bleak.” 

The company has also confirmed to the BoF that it had made the “difficult decision to eliminate certain roles” but did not reveal the exact number of staff that will be impacted.

The firm added that affected employees would receive transitional support.

Founded in 1972, Shiseido owns brands such as Clé de Peau Beauté, Nars, Ipsa, Drunk Elephant and Shiseido. 

The Tokyo-based company reported a 73 per cent drop in profit last year, partly due to lower consumer spending in China – its key overseas market China. The firm also expected the trend would continue into the new fiscal year.

Shiseido Americas has more than 2000 employees, with headquarters in New York City and facilities in Ohio, Texas, Florida, and Canada.

Noé was appointed as interim CEO for the Americas in April, in addition to his prior responsibilities as head of the EMEA region.