Shiseido has launched a voluntary redundancy plan involving 1,500 employees in the Japanese archipelago. This decision is part of the Japanese beauty and cosmetics leader’s transformation plan for its domestic market.
Japanese giant Shiseido announced at the end of February that it would be shedding 1,500 employees in Japan, or 4% of its worldwide workforce. Those eligible for this early retirement program, valid from April 14 to May 8, must meet specific age and career length criteria.
This type of announcement, particularly rare in a country recognized as having one of the strictest labor regulations in the world, has been on the increase since last year.
In search of profitability and growth
Under the leadership of its President and COO Kantari Fujiwara, the Shiseido Group has launched a vast structural reform, entitled “Mirai Shift Nippon 2025“. The program is based on three pillars: sustainable growth, profitable foundations and organizational transformation.
The vast voluntary redundancy plan launched in Japan is designed not only to address the Group’s ageing workforce, but also to accelerate its digital transformation and compensate for an Asia-Pacific market severely penalized by the delayed recovery of the Chinese market. According to Citigroup analyst Shuhei Oba, the main aim is to increase the profitability of the group’s domestic operations. The beauty giant hopes to save 25 billion yen ($167 million) over the next two years.
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Read also > SHISEIDO EXPECTS PROFITS TO FALL BY NEARLY 40% IN 2023
Featured Photo: © Shiseido
