Sephora is cutting jobs in China, the LVMH Moët Hennessy Louis Vuitton-owned company confirmed on Wednesday. The beauty retailer, which has operated in China since 2004, is cutting its workforce by 3%, or about 120 jobs, amid a slowing economy in China, which is not a major issue for a population of 1.4 billion.

Given the challenging market environment, the company is streamlining its organizational structure to ensure long-term sustainable growth in China. Over the past two years, Sephora has launched Anastasia Beverly Hills, Hourglass and Tatcha in China, to positive reviews. The launches of Drunk Elephant and Fenty came in May, but were less popular.

But one of the things about China is that when it comes back, you have to be nimble, and it will come back very quickly. It was reported earlier this week that Estée Lauder Cos. expects further declines in prestige beauty in China next year, while North America is also weakening.

As evidenced by the current declines in travel retail in mainland China and Asia, that overall growth in prestige beauty globally has slowed in recent months. They will have difficulty continuing to sell chemical products at 400 euros per bottle which leaves the factory at 20 euros all inclusive.