Okay, so we’re deep into the credit crunch and it’s really starting to take hold in the beauty world. However, we’re informed again and again that beauty generally weathers financial storms because of the feel-good factor essential for keeping morale up. It’s well known that in times of crisis lipstick sales shoot up because women of the world find solace in a fast beauty boost. What we are starting to see though, is the ugly side of the beauty industry, where the axe is falling hard and fast on jobs. As an example, SpaceNK (UK) recently made one of their PRs redundant (PRs are the vital line between beauty companies and journalists), and yet, according to the Guardian, the company showed a 3.1 million pound profit for the year to March, a fall of 14%. SpaceNK has gone on record saying they feel it’s going to be a tough year. Now, others are following suit and redundancies are coming thick and fast. What I just don’t get though, is how a 3.1 million pound profit, no matter that it’s down on last year, means the end of someone’s job? How badly do they need 45k? Where’s the human side of this largely female industry that saves someone’s livelihood before they invest in a new face mask? And, it’s not just SpaceNK; other big names are also making severe cuts. It’s my feeling that if you are a beauty company in profit, thank your lucky stars and share it around a bit; don’t kowtow to profit margins by making hideous choices for your staff who don’t own the company but have invested time, passion and effort into it. The rewards for doing this, it seems, are really not pretty. Shame on those who don’t support workers and instead batton down the hatches to save themselves.
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2 comments
Well SpaceNK is majority owned by a HUGE private equity firm called Manzanita Capital (which is owned by sons of the Fischers, the founders/owners of GAP)… and I’ve heard about some involvement with Blackstone somewhere… someone at Spa Chakra said that Blackstone was the owner of Spa Chakra so it seemed like Blackstone might have something to do with Space NK as Manzanita owns (it seems) majority shares in Diptyque Candles, Space NK and Spa Chakra.
http://manzanitacapital.com/portfolio.html
It’s a big corporation and unfortunately they treat their employees as if they’re disposable…
Reading this makes my blood BOIL. It seems the larger the profit, the more unneccesary cuts are made like valuable staff that got them to where they are in the first place (SpadeNK PR) I say unnecessary because they HAVE THE MONEY but chose to spend it elsewhere. For example, one top UK company is in the process of making staff shortages, whilst asking the same department to spend a riduculous entertaining budget by the end of the financial year. So lets think about it, will I enjoy entertaing associates knowing I will be spending nearly half of my collegue’s salary in one evening? I DONT THINK SO!
On a larger scale, I was speaking to my friend in the US who is a shoe buyer for MACY’S and 7,000 jobs are going by May. Her ENTIRE BUILDING has to go. So lets see where are the proiorities here, Thanksgiving Day parade which costs millions or 7,000 jobs? The parade wins and 7,000 lose. Don’t tell me the economy is suffering, it’s greed and the bringing back the value of human beings that need to be addressed.