Cosmetics retailer Sephora is cutting hundreds of staff in China, according to people familiar with the matter, as one of LVMH’s biggest brands tries to turn around a loss-making operation in the world’s second-largest economy.

Sephora China has fired both office and store staff while persuading others to resign, with an estimated 10% of more than 4,000 employees in the country affected, said the people, who asked not to be identified for fear of retribution.

Some senior executives, including the country leads for retail and e-commerce, have also left the company, one of the people said.