Jobs in jeopardy at Body Shop

Feb 28 2009 by Iain Laing, The Journal

BODY Shop says 150 UK jobs are at risk after the French-owned cosmetics retailer announced restructuring.

The company said it was consulting employees about proposals to reduce its global workforce by 275 to make the business more efficient.

The retailer is streamlining office operations, but the reorganisation will not affect store staff.

The Body Shop, which employs more than 9,200 people worldwide, was founded by Dame Anita Roddick in 1976 and is now owned by cosmetics giant L’Oreal.

The Body Shop recently revealed that like-for-like sales had dipped 0.9% to £223m in its last quarter.

L’Oreal said the difficult economic climate had hit Body Shop sales in Britain, Spain and North America.

A spokesman for the company was not able to disclose how many people worked for the business in the UK, but said it had more than 300 UK stores as well as offices in London and Sussex.

As part of the reorganisation, The Body Shop said it would refocus the business to support its 2,500 outlets worldwide better and improve its product innovation.

The company said it would make every effort to redeploy affected staff to new positions.

The Body Shop rose to success on the back of its signature ethical, natural aesthetic, viewed as revolutionary when it first opened in Brighton more than 30 years ago. As consumers have become more aware of issues such as fair trade and animal rights, other retailers have followed suit to various degrees – damaging The Body Shop’s unique selling points.

The company’s sale to L’Oreal, which used animal testing, was also criticised by some as a betrayal of its customers and the founding principles of the business. Dame Anita, who died in 2007, argued that the £652m deal was a chance to strike a fairer deal for the world’s poor.

The Body Shop has said it operates independently within L’Oreal, with management reporting directly to the group’s head.

The sale to L’Oreal, which used animal testing, was criticised by some as a betrayal …