Luxury woes deepen for LVMH with Sephora layoffs in China

Cosmetics retailer Sephora China has fired both office and store staff while persuading others to resign, with an estimated 10% of more than 4,000 employees in the country affected

LVMH founder Bernard Arnault, centre, with his son, Antoine Arnault, and Bernard's wife Hélène Mercier at a star-studded event last year. Picture: Cindy Ord/Getty Images

Cosmetics retailer Sephora is cutting hundreds of staff in China, according to people familiar with the matter, as one of LVMH’s biggest brands tries to turn around a loss-making operation in the world’s second-largest economy.

Sephora China has fired both office and store staff while persuading others to resign, with an estimated 10% of more than 4,000 employees in the country affected, said sources, who asked not to be identified for fear of retribution. Some senior executives, including the country leads for retail and e-commerce, have also left the company, one source said.