Hair care and beauty manufacturer Sally Beauty Holdings has announced that is has cut a number of jobs at its Denton headquarters but declined to specify the exact number.
The ‘headcount reduction’ is part of a wider cost reduction plan that will see the company save US$15 million in operating costs per year.
The savings will be piled into improved technology, including a better inventory system and more efficient e-commerce operation, as well as increasing focus on its core hair color and care categories.
“We have dedicated a substantial amount of work over the last several months into the development of initiatives that we expect will generate meaningful financial benefits, within both product margin and G&A expenses,” stated Chris Brickman, President and Chief Executive Officer. “We plan to utilize these benefits to maintain our profitability and fund the key investments required to transform the business and intensify our focus on our most differentiated categories – hair color and hair care.”
“Our unique assortment and demonstrated expertise have established us as the market leader in hair color and hair care, and these categories have sustained healthy growth while other categories have faced increasing competition. We will be reinvesting in strategic initiatives to accelerate growth in color and care, which, combined, represent more than half of Sally’s revenue in the U.S. and Canada. Similar to how our Beauty Systems Group segment is the color and education destination for the professional stylist, Sally’s primary goal is to have every customer feel confident in her ability to color and care for her own hair, and we will tailor our assortment, service and education to ensure we are her go-to store for that purpose,” concluded Brickman.