Morphe Cosmetics, a makeup brand once synonymous with YouTube beauty culture, confirmed on Thursday that it is to extinguish all of its U.S. stores — a move that shocked its employees, outraged customers and left some pundits wondering about the brand’s future.
The news comes after a handful of company employees took to TikTok over the holidays to speak out against the company’s lack of transparency during the layoffs, with many using the hashtag “#justiceformorpheretailemployees”. Viewers were quick to respond in support, blaming the brand for allegedly leaving its employees in the dark while stores exhausted the inventory.
Some beauty experts said the news was unsurprising, given the company has reportedly suffered years of financial and legal troubles and damage to its reputation. The brand’s treatment of employees during the shutdown could further damage its reputation with Gen Z consumers, who have already shown their aversion to Morphe.
“Gen Z makes buying decisions based on their values,” research firm founder Hana Ben-Shabat Generation Z Planet and author of “Gen Z 360: Preparing for the Inevitable Change in Culture, Work and Commerce,” said. These values include buying from companies that make diversity a priority, reduce environmental impact and treat their employees well.
Launched in 2008, the company – which promotes itself on its social platforms as “Makeup for Creators” – has had its share of controversy for years now.
Morphe, which is owned by Forma Brands, has been embroiled in employee controversies, including accusations of racism against jeffrey star and the allegations that Jacques-Charles sent sexual messages to minors.
A spokesperson for Forma Brands did not respond to repeated requests for comment.
In its statement on Twitter, Morphe wrote that the company is “forever grateful to our store teams for their passion, talent and dedication over the years.”
According to Ben-Shabat, young consumers, on whom Morphe built its brand, have moved away from mega-influencers.
Over the past year, Morphe has also been the subject of several lawsuits involving unpaid rent at one of its points of sale, fake ad and the lack of support for its subsidiaries. The brand’s handling of its closures could also open it up to more legal challenges, according to Wendy Musell, an employment lawyer and research partner at Wendy Musell’s law firms.
The recent backlash against the brand has spread to other social media platforms, including Morphe’s Instagram page.
“It’s a shame this is one of my favorite makeup companies and seeing a tank like this is ridiculous and the fact that you treat your store employees so terribly is what’s crazy to me,” one user wrote on the brand’s most recent Instagram post from December 10. 1.
On Twitter, where the brand muted replies to its tweet announcing news of the store closures, people described the closures as heartbreaking.
“I worked here for a year and a half, and I’m just sad,” said one user. wrote.
Morphe employees have been sounding the alarm for weeks
Some of Morphe’s retail employees said it was shocking the company fired them so abruptly – with several employees telling NBC News they were given a day’s notice before losing their jobs. job.
Three employees who spoke to NBC News said their stores were quickly cleared of products following deep discount sales after Black Friday. Workers said they began to worry after Morphe stopped sending product shipments to their locations. An employee at Morphe’s Oregon site said the company told stores that restocking delays were due to shipping issues.
Former employees said they were informed of the closures during a Zoom call on Tuesday and that all remaining stores would close by Saturday.
TikToks under the hashtag #justiceformorpheretailemployees have received more than 7.5 million views, although some viral videos about store closures have been deleted.
Kim, a Morphe employee who asked that her full name not be used for fear of losing her severance pay, said she was advised to delete her TikToks about store closures to secure her severance pay .
Kim said she was passionate about the brand because it was inclusive and supportive of all makeup artists. She called her colleagues “the kindest, most supportive and creative people anyone has ever met.”
“It’s not just a job, it’s your dream,” Kim said of her work at Morphe. “It’s kind of your second life – for some people, their first.”
Kim said she was told managers would receive three weeks of severance pay while beauty artists, the name of Morphe’s retail employees, would receive two weeks. On Friday, Morphe employees who spoke to NBC News said they had not yet received their severance packages.
Musell said workers should understand their rights under federal and state laws. She said one day’s notice for mass layoffs could put a company in violation of the US Worker Adjustment and Retraining Notification (WARN) Act and labor laws in California, where Morphe had 11 stores.
The value of severance to the employer, Musell said, “is that the employee has to give up all their legal rights and that buys peace, so to speak. there is a violation of the WARN law and if they are, at a minimum, entitled to 60 days’ pay,” Musell said.
The “end of an era” for Morphe
Morphe rose to prominence during the heyday of beauty on YouTube between 2016 and 2019. He was at the forefront of a maximalist makeup style that fell out of favor with consumers, especially the audience of Gen Z, who have pivoted to a more minimalist approach to beauty. and skin care.
“They didn’t react quickly because they relied on this art,” Ben-Shabat said, referring to the creative maximum looks Morphe is known for.
Morphe has also reportedly seen sales decline over the past two years. fashion company reported that the brand saw sales increase from $500 million in 2020 to $295 million in 2021. Parent company Forma Brands was also reportedly consider filing for Chapter 11 bankruptcy in October. The store closures indicate that sales continue to decline, Ben-Shabat said.
“A lot of mainstream brands that started on the internet understand that stores are so important, and a lot of them are opening stores,” she said. “So at a time when many DTC (direct-to-consumer) brands are kind of admitting that maybe the DTC model isn’t what it used to be, and that it’s useful to have stores, Morphe closing stores.”
As Morphe continues its uphill battle for relevance, employees like Kim must figure out their next steps. Many are still reeling from the sudden news of job loss, while others are trying to find employment elsewhere.
Kim said she chose to look back on her accomplishments at Morphe rather than dwell on losing her dream job.
“We’re at the end of an era and that’s how I see it,” Kim said. “I’m grateful to have ended up here and grateful to be able to get out of this.”
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