Hsinchu County receives major layoff plan from Shiseido

Taipei, May 13 (CNA) The Labor Affairs Department of Hsinchu County said on Wednesday that it has received a plan from cosmetic brand Taiwan Shiseido Co. detailing major layoffs at its plant in the county.

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 township will result in the layoff of 170 employees at the plant.

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 will 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 Hsinchu plant owned by its subsidiary Taiwan Shiseido in the second half of 2027 with production at the site scheduled to end in the first quarter of the year.

According to Shiseido, the Hsinchu plant largely rolls out skincare products for Taiwan and other Asia Pacific markets.

After the closure, Shiseido said it will relocate production to factories in Japan, including the Nasu site.

The decision to close the Hsinchu plant is expected to enhance the company's "global capacity utilization and improve cost efficiency," and "Taiwan Shiseido will concentrate its management resources on its local distribution business, enabling a more agile and responsive operating model," according to the company.

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 announced that more than 500 workers are expected to be laid off in July when Bridgestone Taiwan Co. shuts down production at its Hsinchu plant 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.