Forma Brands, the company behind Morphe, has made significant layoffs, Glossy has learned.
Forma Brands confirmed 23 positions were eliminated throughout the company. Former employees said affected departments included social media, creative, marketing, influencer relations and communications. It is undetermined how many employees the company has. Forma is now outsourcing some work to agencies to supplement in-house tasks within creative and marketing but the core business and brands remain intact. Employees were informed on October 16, and layoffs were effective immediately.
“We remain focused on executing our growth strategy, which includes diversifying our product mix into adjacent categories with a pipeline of innovative and relevant products supported by a full 360-degree marketing investment.,” said Simon Cowell, president of Forma Brands, to Glossy.
In May, with the launch of a new Morphe product called Continuous Prep & Set Mist+ via Ulta Beauty, the company was trying to set a new tone that was less influencer-centric than in prior years. In July, Morphe launched a makeup collection with TikTok influencer Meredith Duxbury.
According to a person familiar with the business decision of Forma Brands, the company has also hired 21 positions across numerous teams over the past 4-5 months. The decision to eliminate certain roles and introduce agencies was designed to make the business more agile and responsive to changes in influencer marketing, social media platforms and consumer trends. The current brands within the Forma Brands portfolio include Morphe, Morphe 2, Lipstick Queen, Jaclyn Cosmetics and Born Dreamer, the latter of which is a fragrance partnership with TikTok influencer Charli D’Amelio.
Three-year-old Forma Brands filed for Chapter 11 bankruptcy in January before exiting under new ownership in April. Forma Brands’ new owners purchased the company for $690 million. They include &Vest, a consumer brand investment and operational platform with a history in the beauty industry, alongside Jefferies Finance LLC funds, managed by Cerberus Capital Management, L.P., and FB Intermediate Holdings, LLC. At its height, Forma Brands had been evaluated at $2 billion in 2019 when it sold a majority stake to private equity firm General Atlantic. Cliff Moskowitz, an operating partner at &Vest, has joined Forma Brands as chief executive officer. Moskowitz replaced Eric Hohl, who joined in March 2022 and formerly served as Too Faced CEO.
