Key Takeaways:Drunk Elephant sales dropped nearly 65% year over year (YoY) in Q1 2025, prompting major layoffs.Shiseido Americas is undergoing a broader restructuring to regain profitability.Laid-off employees told BeautyMatter they were blindsided and questioned the brand's future under Shiseido.What was once the crown jewel of Shiseido’s portfolio is now more like a crown of thorns.Drunk Elephant, the “clean” skincare brand Shiseido acquired for $845 million in 2019, has struggled to maintain its footing in 2025. Just two months after the Japanese beauty conglomerate reported a nearly 65% YoY decline in Drunk Elephant sales for Q1, the brand reportedly experienced “massive” layoffs last week, according to beauty industry watchdog Estée Laundry.Layoffs reportedly extended to other Shiseido Americas brands as well, though it remains unclear which ones were affected. Shiseido Americas' portfolio of beauty brands includes NARS, Tory Burch Beauty, and Dr. Dennis Gross Skincare.“Despite our best efforts and hard work, business performance has declined significantly through 2024, and the 2025 outlook remains bleak,” said Shiseido Americas Interim CEO Alberto Noé in an internal memo on July 16. “... We must accept that there are far deeper concerns which have beset our region for years. Over time, both the size and cost of our organization have increased exponentially, largely in anticipation of a level of growth that, unfortunately, has not materialized.”A Shiseido Americas representative confirmed the news in an email to BeautyMatter, stating that the company is undergoing a business transformation to return to growth and profitability.