Makeup retailer Morphe closes all US stores after facing criticism for surprising employees with empty shelves and layoffs

• Beauty retailer Morphe confirmed in a tweet on Thursday that it has closed all of its US stores.
• The brand will now exclusively sell its products online and at select retailers.

Beauty retailer Morphe has confirmed that it's closed its makeup stores in the US, effective immediately.

In a tweet posted to the brand's account Thursday, Morphe described the closures as a "difficult decision."

"We are forever grateful to our store teams for their passion, talent and dedication over the years," Morphe wrote. "Customers can continue to shop Morphe online and at select retailers. Morphe stores outside the U.S. will remain open."

Morphe has turned off the commenting feature at the time of writing, but a spokesperson for Morphe's parent company FORMA Brands told Insider in an email that it's "made the strategic decision" to focus on wholesale and e-commerce operations "following a careful evaluation of all aspects" of its business.

"We believe this shift will position Morphe to better compete in the broader beauty landscape and more efficiently reach our customers where and how they shop," the statement said. "Connecting with consumers around the world through beauty stands at the center of everything we do, and while we have loved welcoming customers into our stores, we look forward to focusing on the foundational areas of our business, including our wholesale partnerships, robust e-commerce footprint and innovative brand marketing strategy."

As of Thursday, Morphe stores in the UK, the Netherlands, and Australia appear to be open, according to the brand's website.

Morphe has faced criticism in recent weeks, with one ex-employee telling Insider her entire store was fired

The beauty brand — known for its affordable makeup brushes and collaborations with influencers — has been widely criticized since late December 2022 by people who claim to have worked for the brand.

Many have made TikTok videos describing their empty stores, and said they were never informed by management as to why there was no inventory. In some cases, employees have described massive sales and surprise layoffs.

Insider spoke with one former store manager who said she noticed products being discounted at the Texas store she worked at for over a year, and eventually had no stock to line shelves around the holidays in 2022.

On December 22, she said, her entire store was laid off and notified that their last day of work would be December 26.

On Wednesday, a spokesperson for FORMA Brands told Insider that the brand "made decisions to close certain US stores," but did not share a number.

The statement cited "the broader beauty landscape throughout the last year" as the reason for the closures.

"Decisions that impact our people are incredibly difficult and we extend our deepest gratitude to the dedicated Morphe store team members at the closing stores for delivering outstanding beauty experiences to countless consumers over the years," the statement said.

While the Morphe representative did not explain what broader industry headwinds the brand was facing, The New York Times reported in 2022 that the retailer had fallen from grace with Gen Z for its relationship with controversial influencers like Jeffree Star and James Charles and a shifting cultural interest in skin care over makeup.

Insider's reporter noticed bare shelves at a Morphe store in New Jersey just before it closed

Insider visited a Morphe store in Paramus, New Jersey, later that day, and found it was still open for business. However, there were no shoppers at the time of the visit and almost no beauty products on the shelves.

The only products remaining items were makeup from r.e.m. beauty (Ariana Grande's brand), and Morphe's collaboration brush set with Ariel Tejada, Kylie Jenner's makeup artist. Both sets of items were excluded from the stores 80% off sale.

Insider returned to the store on Thursday hours before Morphe confirmed that all US stores had been closed.

The doors were shut, the shelves were empty, and it appeared that product displays were slowly being taken down.

Prior to Thursday's announcement, 27 Morphe stores remained in the US according to the brand's website store locator; at the time of writing, however, that number had dropped to 19.