The multinational cosmetics company Estee Lauder's Hong Kong office is reported to have enacted layoffs affecting up to 100 employees as part of its integration efforts.
This move follows speculation regarding L'Oréal's decision to reduce its workforce by more than 200 employees amid a merger with its Guangzhou office.
Sources indicate that the layoffs are associated with the merger of Estee Lauder's Hong Kong operations with those of its Taiwan office. The company currently employs approximately 1,300 staff members in Hong Kong.
Furthermore, Estee Lauder has closed two stores in the city this year, although no additional plans for adjustments have been confirmed to date.
According to the company’s official website, Estee Lauder operates 21 physical stores in Hong Kong.
The report highlights that several leading cosmetics firms have undertaken workforce adjustments within their Hong Kong operations, many of which have already been implemented, including Shiseido's division.
Meanwhile, the L'Oréal Hong Kong office is reportedly laying off around 90 percent of its workforce in the city following its merger with the mainland branch, while a minority of employees will be transferred to the Guangzhou office.
The Labour Department responded to Sing Tao Daily, The Standard's sister publication, stating that it had reminded L'Oréal to properly handle employee termination compensation in accordance with the Employment Ordinance and the terms of employment contracts.
Business analysts have suggested that certain brands are already operating under shared management between their Hong Kong and mainland divisions, prompting inquiries into whether the integration of the Greater Bay Area will hasten cross-border mergers.
The analysis posits that consolidation seems inevitable, given the generally lower labor and operational costs in mainland China; however, widespread adoption of similar measures has not yet been observed.
