The news: Shiseido is planning a “wide-ranging and significant reduction” to its Americas workforce, according to an internal memo first reported by Instagram account Estée Laundry. That marks the latest in a string of beauty layoffs, with both Estée Lauder and Coty announcing headcount reductions earlier this year.

The landscape: The layoffs come at a particularly challenging moment for Shiseido.

• The company’s sales fell 9% YoY in Q1, led by a 19% drop in the Americas and a 14% drop in China and travel retail.
• Its Drunk Elephant brand, once a significant source of growth, has fallen out of favor with Gen Alphas and older consumers alike. Sales fell 65% YoY in Q1 due to strategic missteps that opened the door for lower-priced competitors to swoop in.
• On top of that, US beauty demand has softened because of inflation and economic uncertainty—with no improvement in sight.
• “Shiseido Americas finds itself deeply challenged on multiple fronts,” interim Americas CEO Alberto Noé wrote in the memo announcing the layoffs, adding that its “2025 outlook remains bleak.”