Hsinchu County Government receives mass layoff plan from Shiseido

The Hsinchu County Government’s Labor Affairs Department said yesterday that it has received a plan from cosmetic brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口).While the labor authorities did not disclose the number of employees to be laid off, Japanese news media reported earlier in the day that the closure of the company’s factory in Hukou will result in the layoff of 170 employees.The labor department said Shiseido followed the law by reporting its layoff plan, adding that the authorities will closely monitor negotiations between the management and affected employees over the layoffs and step in if any disputes arise.The department said it would provide affected employees with job training and counseling to help them find new employment.Japan’s Shiseido Corp issued an announcement on Tuesday saying it will close the Hukou plant in the second half of next year with production at the site scheduled to end in the first quarter of the year. The plant largely rolls out skincare products for Taiwan and other Asia Pacific markets, Shiseido said.After the closure, Shiseido will relocate production to factories in Japan, including the Nasu site, it said.The decision to close the plant is expected to enhance the company’s “global capacity utilization and improve cost efficiency,” Shiseido said.“Taiwan Shiseido will concentrate its management resources on its local distribution business, enabling a more agile and responsive operating model,” it added.Japanese media reported that following the closure Shiseido’s only production sites in Asia outside Japan will be in Shanghai and Beijing.On Monday, Hsinchu County Government announced that more than 500 workers are expected to be laid off in July when Bridgestone Taiwan Co (台灣普利司通) shuts down production at its plant in Hukou Township as part of a restructuring plan.Commenting on the layoff plans by Bridgestone and Shiseido, Hsinchu County Councilor Lo Mei-wen (羅美文) said the county has a large old economy sector, adding that he fears the layoffs are not isolated cases, with additional factory closures likely to continue to impact the local job market as more firms in traditional industries leave Taiwan.