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Home / Business / Companies / Retail

Changes under way at L'Oreal: Cosmetics brand consults with staff on structure of NZ business

Aimee Shaw
By Aimee Shaw
Business Reporter·NZ Herald·
31 Aug, 2022 05:55 AM3 mins to read

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L'Oreal says proposed changes would not affect the supply and fulfilment of its products. Photo / 123RF

L'Oreal says proposed changes would not affect the supply and fulfilment of its products. Photo / 123RF

Cosmetics giant L'Oreal is consulting staff over proposed changes to the structure of its New Zealand business.

The proposal could result in the management of the NZ operation shifting to Australia.

Company spokeswoman Tanya Abbott said the company was currently "consulting with a small number of our New Zealand employees."

Abbott said the French multinational intends to keep "a very strong footprint in New Zealand" and it would "retain the vast majority" of its employees here.

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"We are bringing our New Zealand and Australian teams in closer alignment across all areas of our business. We already work together very closely in some areas and have done for many years," says Abbott, L'Oreal NZ corporate communications and public affairs manager.

"We are consulting with our New Zealand teams about a proposed structural change. Like all businesses we review our structures."

The NZ arm of L'Oreal employs 230 staff.

Abbott is yet to respond to further questions about the anticipated number of redundancies after the change.

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Rodrigo Pizarro would continue as chief executive of L'Oreal Australia and New Zealand, she said. He has been in the role eight years.

Abbott said there would be no changes to L'Oreal's supply and fulfilment in New Zealand and it would retain its Ellerslie offices and distribution centre in Auckland.

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L'Oreal's head office for New Zealand and Australia is in Melbourne.

At the end of 2019, L'Oreal laid off its local sales staff, citing increased competition and "disruption" in the pharmacy market. Two Auckland staff and one each in Tauranga and Wellington were made redundant.

The distribution of its brands to pharmacies across New Zealand was moved to a third-party sales provider.

L'Oreal NZ accounts for the last financial year show the company made $14.5m profit in the year ended December 31.

The company took $1,503,890.40 in government wage subsidies during the height of the Covid-19 pandemic for 224 staff.

A note in its accounts says Covid had a significant impact on operations but since lockdown restrictions were lifted there had been no long-lasting detrimental impact to the business.

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New Zealand L'Oreal employees were awarded free company shares worth $155,000 in September 2020 but these will not be allocated until November 2025 - subject to their presence in L'Oreal at that date.

The Herald has sought additional comment about the share programme.

• This article has been amended to clarify that the proposal could in fact result in NZ management shifting to Australia.

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