Glossier continues its reduction in workforce as it transitions into wholesale distribution
Glossier, the popular beauty brand, has announced layoffs of around two dozen employees as it transitions away from single-channel distribution. The move comes approximately a week after the company announced its first wholesale deal with Sephora. The news was reported by Retail Dive, who obtained a letter from CEO Kyle Leahy to employees.
In the letter, Leahy mentioned that nearly 20 new employees would be hired in the latter half of the year to fill roles in wholesale, product, supply chain, and operations. The shift in strategy aims to better meet the company's omnichannel goals, according to Leahy.
This is the second round of layoffs for Glossier within the past eight months as it strives to scale sustainably. In January, the brand had laid off more than 80 employees, approximately one-third of its workforce, due to mistakes in its path to scale.
CEO Kyle Leahy, who has been in the role for two months, has been working on developing a new strategy for Glossier. In a statement to Retail Dive, Leahy explained that the layoffs were necessary to support the company's omnichannel approach.
Leahy added that this strategy encompasses opening brick-and-mortar stores, partnering with Sephora, and replatforming the Glossier website this fall. However, the brand has faced challenges this year, including founder Emily Weiss stepping down from the CEO position in May and announcing price hikes due to higher production and shipping costs in June.
Despite the challenges, Leahy expressed optimism in her letter to employees, stating that the "future is bright." Glossier's recent strategy focuses on creating immersive brand experiences, leveraging digital PR and SEO, and encouraging user-generated content. The brand has also strived to maintain its position as a leader in the clean beauty space, emphasizing sustainability and transparency.
- The new strategy for Glossier, led by CEO Kyle Leahy, encompasses expanding into retail stores, partnering with Sephora, and redesigning the Glossier website this fall, all aiming to achieve the brand's omnichannel goals.
- The recently announced layoffs at Glossier are part of the brand's efforts to scale sustainably, with nearly 20 new employees set to join the company in the latter half of the year in various roles like wholesale, product, supply chain, and operations.
- In addition to these changes, Glossier continues to prioritize its commitment to clean beauty, upholding sustainability and transparency, and capitalizing on digital PR, SEO, and user-generated content to create immersive brand experiences.
- Despite the challenges faced this year, including a change in leadership and price hikes due to increased production and shipping costs, CEO Kyle Leahy remains optimistic about Glossier's future, asserting that it is bright.
