Japanese cosmetics giant Shiseido says it will focus on its core brands over the next two fiscal years in a bid to turn its business around.

Sluggish sales in China and at duty-free shops both in and outside Japan have pushed down earnings. Group net income from January to September this year fell more than 96 percent from the same period last year.

President and COO Fujiwara Kentaro announced the firm's action plan for 2025-2026 at a news conference on Friday.

He said Shiseido's planned structural reforms include holding off on recruitment globally to cut labor costs. The company also plans to review the profitability and growth potential of each brand and consider withdrawing or scaling down some labels.

As for its business in China, the company has continued to struggle amid the slowing economy. Shiseido aims to quickly rebuild its foundation in the country by concentrating on luxury brands.

The cosmetics maker has already closed some of its stores and offices in China. Fujiwara said the company cannot afford to be optimistic as the market there has matured and consumers are now more budget-minded.

He went on to say the firm will focus investments on brands with high profitability to recover market share.