Hongkong Beauty Giant Sasa International Decided To Lay Off The Number Of People Expected To Reach 3%

Recently, Hongkong beauty giant Sasa International Holdings Limited has made a layoff plan due to its poor retail market.

It is understood that the number of layoffs in the logistics department with 300 to 400 employees will reach five to 60%. There will also be personnel changes in the public relations and legal departments of the enterprises, while the continuous loss of the electricity sector will be reduced by more than 2/3. The front-line staff may be reduced to 30000-80000 yuan from the previous 30000-80000 Hong Kong monthly salary due to unpaid leave or reduced duty income.

Staff turnover accounts for less than 3% of the total front-line and logistics staff in Hongkong, and a short-term wage cut from 3 to May. Senior management will reduce wages by about 40%, while the rest of the grass-roots staff will be reduced by 10 to 15%. A series of measures will save 30% of the cost in the short term.

In addition, the report pointed out that Sasa's staff at the bottom of the logistics department need to reduce wages by about 20%, reduce the salary of managers by about 20%, and give two days unpaid leave, while managers pay 60% and two days unpaid leave at a higher level for three months. Front-line staff will have to pay 12 days to 18 days without pay leave, which will greatly affect their welfare.

In 2019, after the first loss in the first half of the fiscal year, the group said at the analysis conference that 30 Hongkong shops will be closed in the next year, which are concentrated in tourist areas such as Tsim Sha Tsui, Mong Kok and Tongluowan. In the future, if the owner can not reduce at least 50% of the rent, he will consider changing the plan. He also emphasizes that he will shift his business focus to the Southern China area of the mainland.

Affected by seven months of social events and the outbreak of new coronavirus pneumonia, retail businesses were closed down, layoffs and reduced salaries. Two major appeals were put forward, which called for owners to reduce their rent, including the exemption of rental in February. They were divided into 3-6 months according to turnover and were not subject to tenants' rent.

Many large local developers in Hongkong, such as Kowloon warehouse land and Sun Hung Kai estate, have announced a temporary substantial reduction in the basic rent of tenants in February. However, it is still difficult to avoid the closing of stores and layoffs in the retail industry.

Xie Chiu an, chairman of the Hongkong Retail Management Association, released the December sales figures at the beginning of the month, saying that the size of the layoffs for the 5000 industry is expected to expand and advance ahead of time, and is directly referring to the "super cold winter" and the darkest hour of Hongkong's retail industry.

Sasa International said that during the Spring Festival, the sharp drop in passenger volume in Hongkong resulted in a sharp drop in trading volume of 54.4%, of which the mainland passenger dropped by 92.1%, while the local passenger volume declined by 8%. In addition, the average transaction volume of mainland customers and local customers decreased by 14.5% and 25.6% respectively, as the average transaction volume of mainland customers was larger and the proportion of turnover was higher. In the holiday season, the average total transaction volume of Sasa international fell by 51.5%.

Helpless, Sasa International says it can only streamline costs and reduce losses through layoffs.