2025 saw significant workforce adjustments across the global beauty and retail sectors, with companies implementing widespread restructuring and headcount reductions amid slowing growth and rising costs. Estée Lauder alone incurred US$1.14 billion in restructuring expenses, cutting jobs in the US and China due to weak demand and cautious retailer orders. Shiseido also announced structural overhauls and 300 job cuts in the US.
Cost optimisation was a broad trend, extending beyond beauty specialists. Procter & Gamble confirmed plans to cut 7,000 jobs over two years to focus on core categories, even as it invested US$150 million in its Iowa City Oral-B site for production repatriation and job creation. Kenvue trimmed roles at its new headquarters as part of a broader review, and Coty targeted US$130 million in savings by cutting around 700 global beauty roles through its "All-in to Win" programme.
Retailers also made substantial changes. Walmart reduced hundreds of office-based roles and paused H-1B visa hiring, while enhancing employee discounts. Target eliminated 1,800 corporate positions. Walgreens, now under new ownership, discontinued paid holidays for hourly staff, reflecting a tougher employment environment in US retail.
Conversely, seasonal and frontline hiring remained strong in certain areas. Boots recruited over 6,000 temporary staff for the festive period and invested in enhanced training and AI skin analysis for pharmacists. Superdrug added more than 600 jobs and opened new stores despite facing wage and tax pressures.
Leadership transitions were frequent. Unilever saw management changes, and former Unilever Prestige chief Vasiliki Petrou launched Veralis Group. Numerous companies, including L’Oréal Canada and Chanel, made strategic appointments to bolster brand relevance and transformation capabilities.
The year also highlighted operational challenges and labour tensions. Bodycare faced potential administration, putting 1,500 jobs at risk, while The Body Shop's former headquarters were demolished. Hudson's Bay ended commission-based pay for beauty advisors, and Avon representatives expressed discontent over reduced earnings from commission changes. Amazon faced strikes in Germany and announced global corporate job cuts, while Shopify indicated AI's role in future hiring decisions.
Despite widespread cuts, investment in skills continued in higher-growth areas. Allergan Aesthetics expanded training centres, and firms like Boots and L’Oréal embedded digital and data leadership roles. These targeted investments suggest a strategic shift towards future readiness, even as the industry navigated a year defined by adjustment rather than pure expansion.
