L'Oréal confirms more job cuts to come
L'Oréal has confirmed a policy of gradual but significant job cuts worldwide. Company president, Jean-Paul Agon said recruitment had practically ceased in all the developing countries and a similar situation obtained in emerging markets.
L'Oréal has confirmed a policy of gradual but significant job cuts worldwide. Company president, Jean-Paul Agon said recruitment had practically ceased in all the developing countries and a similar situation obtained in emerging markets.
The workforce has been tending to decline in western Europe and north America but is likely to stabilise in the new markets. However, L'Oréal's total workforce was around 67,660 at the end of 2008 compared with 63,400 at the end of 2007, largely as the result of the integration of YSL Beauté into the group from mid-2008. Job cuts in the US have already been announced and a comprehensive cost-cutting programme is being introduced.
The company has also indicated that it intends to adapt to the new conditions in the world market by launching lower cost products aimed at consumers with reduced purchasing power. Agon said the current offer – ranging from €5 with Garnier up to €250 with Armani – is to be expanded with the development of "more accessible lines" to retain existing clients and attract new ones. The group will launch a new perfume (25ml priced at €35) under the Viktor & Rolf brand, which compares with a current price of around €100 for 100ml of product. The policy will be applied to new types of cosmetics including new men's toiletries under the La Roche Posay brand to be sold through pharmacies.