UK-headquartered beauty company Lush Fresh Handmade Cosmetics is shutting down some of its Vancouver operations and laying off staff.
Lush told Daily Hive Tuesday that it is scaling down its manufacturing, distribution, and woodshop facilities in Vancouver. The company will gradually shift manufacturing to its Toronto facilities over the next six months. The Vancouver woodshop will be closed by February 26, 2025.
The company said the announcement “comes with great sadness.” It declined to provide the number of staff being laid off, saying it’s still working on transitioning some employees into new roles elsewhere.
“Streamlining our operations is in no way a reflection of our dedicated team’s efforts, but rather a strategic global business decision that we believe is necessary to ensure the long-term success of the brand,” Lush said.
There are no plans to close stores, and online offerings will remain unchanged.
Lush’s profits fall amid cost increases and cyberattack
Lush’s most recent financial report, published in May 2024, said the company operates nearly 860 stores in 51 countries. It reported a drop in revenue for the financial year ending in June 2023, noting it was “disappointing” to see less money coming in than the year prior.
“The first half of the year saw a continuation of reduced consumer sentiment due to inflationary pressures that have impacted most of our markets,” it said.
It profited only GBP(£)2.1 million (C$3.8 million using today’s conversion rate) in 2023, a £30.8 million drop from 2022.
“The underlying [profit] decline was due to increases in cost of goods, staff costs and some operating costs and Covid related benefits in [2022] that did not recur in [2023],” it said.
Lush’s financial difficulties worsened in January 2024 when it suffered a ransomware attack. Several of its internal assets were either stolen or encrypted, but an investigation revealed no customer credit card information was at risk.
Lush is known for its commitment to environmentally friendly packaging and opposition to animal testing, among other social causes. Back in 2020, its Vancouver manufacturing centre made local headlines for donating thousands of products to frontline workers in BC.
In 2021, Lush stopped posting on Facebook, Instagram, TikTok, and Snapchat to protest the negative effects these social media platforms have on teens’ mental health. It estimates this move impacted revenue, but it said it’s impossible to know by how much.
“Whatever the figure for Lush, we remain proud of and committed to our stance and until we are convinced that proper actions have been taken to protect young people on these platforms we will not be returning to them.”