Shiseido is planning a “wide-ranging and significant reduction” to its Americas workforce, according to an internal memo first reported by Instagram account Estée Laundry. That marks the latest in a string of beauty layoffs, with both Estée Lauder and Coty announcing headcount reductions earlier this year. While some of Shiseido’s problems stem from its misjudged acquisition strategy, its downsizing also speaks to the difficult beauty environment. We expect cosmetics and beauty sales to rise 2.4% this year, less than half of 2024’s growth rate—and a far cry from the 11.2% increase in 2023.

Publishers are shifting from ad-driven models to licensing and subscriptions: AI is accelerating the end of traffic-chasing media economics.

AI can be both sword and shield in layoffs: Businesses are cutting costs and staff while repositioning around AI, which is slashing entry-level opportunities and pushing workers to upskill.

Ad agency consolidation is shaking employee confidence: Many fear layoffs, unclear futures, and eroding culture as leadership focuses on cost-cutting.

Tech layoffs surge as AI eats middle management: Microsoft, LinkedIn, and others are slashing jobs to “flatten” org charts, raising concerns that generative AI's rise will echo the dot-com era's reckoning.

Both firms are slashing hundreds of jobs, citing AI efficiencies and market shifts—signaling a future where only the AI-proficient survive.

Meta axes VR jobs as Reality Labs flounders: Over 100 workers, including staff behind the “Supernatural” fitness app, were cut as the firm pivots away from costly metaverse efforts.

TikTok is restructuring its governance and experience team: The move affects marketplace safety within TikTok Shop and may be a response to the platform’s underperformance last year.

Firms are pulling resources from core roles to fuel AI growth, but without ROI, they’re hollowing out the workforce they still need.

The company is likely looking for ways to reinvigorate growth after a weaker-than-expected Q4

US consumer spending was resilient in 2024, but confidence is fading: Tariffs, layoffs, and inflation fears threaten to slow momentum as economic uncertainty looms.

Starbucks to lay off 1,100 workers in a bid for efficiency: The coffee company is also reducing its menu by 30% to improve order speed and consistency.

Estée Lauder expects net sales to fall up to 12% this quarter: That exceeds the 6.8% decline analysts forecast and shows the need to adapt amid deep staff cuts.

Department stores need a reboot after sales fell 1.6% last year: Retailers like Kohl’s are searching for a winning formula to revitalize the struggling department store model.

Starbucks’ turnaround takes shape: While US comp sales fell for the fourth-straight quarter, CEO Brian Niccol is confident that investments in the store and worker experience will bear fruit.

Wayfair pivots from Germany to focus on physical retail: The country’s challenging economic climate is one reason the retailer is reallocating resources to areas with better long-term potential.

Edelman wants to rely less on top-funnel brands: Layoffs show the company attempting to diversify revenues and meet demand for marketing services.

Recent acquisitions and service launches will help it maintain momentum

Even so, it’s laying off workers as it dives into value-added services and non-card payments

Hasbro and Mattel’s cost cuts pay off: Despite sluggish demand, both companies beat analysts’ bottom-line expectations.