Yesterday, September 29, Sally Beauty Holdings laid off its entire in-house creative team in an effort to save overhead costs. They will instead be outsourcing labor to save money and align with competitors. This hits right before Q1, and right as the company moves into a new headquarters aimed at increasing collaboration and productivity.
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Take a moment to pull up Sally Beauty’s stock chart over the past year as you read this. It tells the story better than I can. Back in May, we found out that the American development and tech teams were being laid off and replaced with offshore teams in India. The immediate result was a sharp spike in the stock price, which then leveled off at a new high. In August, the same thing happened to the UX and Product teams, and once again the stock price went up. Now the Creative teams are being offshored. You can probably guess what the stock price will do next. If you still work at Sally Beauty, it’s important to recognize that the current leadership seems to care more about pushing that line on the stock chart upward than about supporting American jobs or building the company for the long haul. What’s next? If you are an American employee still with the company, I would be worried. Leadership has already shown everyone exactly what their priorities are. As for the stock price and overall health of the company, I encourage you to ask yourself (and your favorite Ai tool) a simple question: "What happens to a company in the short and long term when it offshores massive parts of its workforce?" The answer is not complicated. The companies reputation will take a hit, and eventually the stock price starts to slide. Unfortunately, by the time that happens, the executives driving these choices will probably be long gone, boasting on their resumes that they “increased investor value by X percent.” How do you combat this... with your wallet of course. Do not use or buy products from Sally Beauty.