L'Oréal Hong Kong is reportedly making redundancies among its staff due to its merger with the mainland branch, while a minority of employees will be transferred to the Guangzhou office.
This came after a week-long speculation that the French personal care brand is laying off over 200 staff, or around 90 percent of its workforce, in the city, following the combination of its Hong Kong and Guangzhou offices in late June.
It is reported that the employees will leave the company by the end of September. Only a small number of employees are being retained to communicate and support frontline staff, ensuring the maintenance of basic operations.
Established in 1983, L'Oréal Hong Kong has been operating in Hong Kong for over 40 years. It currently employs nearly 300 people, excluding frontline sales staff.
L'Oréal Hong Kong has no response to the redundancy rumor at this time. Meanwhile, L'Oréal China has once denied the claims, stating that the information is "inaccurate."
The company stated that it is working on a "more optimized organizational structure" on both the global and local levels to keep pace with the constantly changing market environment and consumer demands.
In 2020, L'Oréal Hong Kong reportedly laid off staff due to the impact of the Covid-19 pandemic, with 60 employees being required to resign immediately.
