As a part of its restructuring efforts, Ulta Beauty is set to lay off an unspecified number of corporate employees.
The positions set to be eliminated will include both current and open roles across all beauty company divisions. The company’s decision to layoff employees comes in light of the impact of the COVID-19 pandemic on its business and the knowledge that recovery will take considerable time.
“While incredibly difficult, these decisions were made thoughtfully with a focus on resetting our corporate cost structure to operate more effectively and efficiently in the short-term as well as optimizing our enterprise capabilities to thrive in the long-term,” a company spokesperson told Retail Dive.
In Q2 2020, the beauty retailer witnessed its net income plummet by 95 percent, while its eCommerce division witnessed astounding growth, improving by roughly 200 percent. Prior to Q2, Ulta was forced to cut its store opening plans from 75 to 30 due to the decline in foot traffic at its existing brick and mortar locations.
The decline in foot traffic was accompanied by a decrease in demand for the company’s loyalty program, which was down year over year in Q3.
The move to eliminate roles also comes at a time when the company is making several key leadership changes. Ulta Beauty recently appointed Maria Salcedo as senior vice president of merchandising for makeup, Melissa Myles Edwards as senior director of target merchandising (a newly created role) and Sean Bentley as senior vice president of merchandise planning, inventory and operations. Additionally, Lisa Hamilton, vice president of merchandising of prestige makeup, is being charged with leading both iconic and boutique brand efforts. These appointments highlight some of the ways the beauty retailer is looking to effectively streamline its business.