With growth slowing in key markets, costs rising and confidence uneven, 2025 became a defining year for people, power and priorities across the global beauty and retail industry. From boardrooms to shop floors, companies restructured, recalibrated and, in many cases, reduced headcount—while selectively investing in talent deemed critical to future growth.
In the US and Europe, restructuring accelerated as manufacturers and retailers moved to protect margins amid softer demand. Estée Lauder emerged as one of the most visible examples, with restructuring costs hitting US$1.14 billion as workforce cuts gathered pace. The group pressed ahead with job reductions in the US and China, citing weak demand and cautious retailer ordering, even as it reshaped leadership across its makeup portfolio with senior appointments designed to stabilise brands such as M·A·C, Bobbi Brown and Too Faced. Shiseido followed a similar path, unveiling major structural reorganisation plans, outlining its 2030 strategy and announcing leadership changes—while confirming 300 job cuts in the US as Drunk Elephant’s repositioning was pushed back to 2026.
Cost optimisation was not confined to beauty specialists. Procter & Gamble confirmed plans to cut 7,000 jobs over two years as it sharpened focus on core categories, despite simultaneously investing US$150 million in its Iowa City Oral-B site to repatriate production and add jobs. Kenvue also trimmed roles at its new Summit headquarters as part of a wider review that included potential divestments. Coty, meanwhile, launched the next phase of its “All-in to Win” programme, targeting US$130 million in savings and cutting around 700 beauty roles globally.
Retailers faced their own reckoning. Walmart trimmed hundreds of jobs tied to office closures and consolidation, paused hiring tied to costly H-1B visas, yet moved to strengthen retention by broadening its employee discount to include groceries. Target eliminated 1,800 corporate roles ahead of a CEO transition, while also retooling internal programmes to align with shifting political and cultural expectations. Walgreens, under new ownership, dropped paid holidays for hourly workers, underscoring the tougher employment landscape emerging in parts of US retail.
In contrast, seasonal and frontline hiring remained robust in pockets of the industry. Boots recruited more than 6,000 temporary workers ahead of the festive period and rolled out enhanced dermatology training and AI-powered skin analysis tools for pharmacists, signalling continued investment in in-store expertise. Superdrug added over 600 jobs and opened new stores despite warning of wage and tax pressures, while Flipkart ramped up fulfilment hiring across India to support its flagship sales event.
Leadership change was another defining feature of the year. Unilever saw a reshuffle at the top, with Rebecca Marmot stepping down after six years and sustainability and corporate affairs roles being combined under new leadership. Elsewhere, former Unilever Prestige chief Vasiliki Petrou launched Veralis Group, reflecting a broader trend of senior executives moving into advisory and investment roles at the intersection of beauty, wellness and health. L’Oréal Canada, Chanel, Coty, Kiko Milano and Nivea all made strategic appointments aimed at strengthening brand, cultural relevance and transformation capabilities.
Yet not all changes were proactive. In the UK, Bodycare prepared to enter administration, placing 1,500 jobs at risk, while The Body Shop’s former headquarters was demolished as operations were consolidated under new ownership. Hudson’s Bay restructured its cosmetics workforce, ending commission-based pay for beauty advisors amid creditor protection proceedings. Avon representatives voiced frustration over commission changes that significantly reduced earnings, highlighting growing tension within direct-selling models.
Labour relations also moved into sharper focus. Amazon faced warehouse strikes in Germany on Black Friday and announced plans to cut 14,000 corporate jobs globally, while Shopify drew headlines by pausing new hires unless roles could not be performed by AI—signalling how automation and technology are reshaping the future of work.
At the same time, investment in skills and long-term talent pipelines continued in higher-growth segments. Allergan Aesthetics expanded training centres across the US, while Boots, L’Oréal and others embedded digital and data leadership roles to future-proof organisations navigating rapid change.
Taken together, 2025 revealed an industry in transition. Job cuts, leadership reshuffles and labour disputes reflected the pressure of slower growth and rising costs, while targeted hiring, upskilling and strategic appointments pointed to where companies see their future. In a year defined by adjustment rather than expansion, people decisions became one of the clearest indicators of how beauty groups are positioning themselves for the next phase of growth.
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