NEW YORK — Estee Lauder may trim as many as 7,000 jobs by fiscal 2026, more than 11% of its workforce, after the global beauty cosmetics maker lost money in its most recent quarter as reported a 6% sales slump.
Estee Lauder to cut up to 7,000 jobs as sales slide
Estee Lauder may trim as many as 7,000 jobs by fiscal 2026, more than 11% of its workforce, after the global beauty cosmetics maker lost money in its most recent quarter as reported a 6% sales slump.
By ANNE D'INNOCENZIO
February 4, 2025 at 3:49PM
The New York company behind such brands as MAC, La Mer and Aveda tempered its profit outlook as the economies of China and Korea slow, in addition to global geopolitical uncertainty.
China announced retaliatory tariffs on some American imports and an antitrust investigation into Google on Tuesday, just minutes after a sweeping levy on Chinese products imposed by U.S. President Donald Trump took effect.
Estee Lauder expects to book restructuring and other charges related to the job cuts of between $1.2 billion and $1.6 billion, before taxes.
As of June 30, 2024, Estee Lauder had roughly 62,000 employees worldwide, according to the company's latest annual filing.
''We are significantly transforming our operating model to be leaner, faster, and more agile,'' said CEO Stéphane de La Faverie, who became the company's top executive last month.
The company posted sales of $4 billion in the latest quarter, down from $4.28 billion in the same period last year.
Estee Launder now expects profit of between 24 cents and 34 cents in the current quarter, far below the 61 cents that Wall Street had been expecting, according to FactSet.
Shares of The Estée Lauder Companies Inc. fell nearly 15%, or $12.14, Tuesday.
about the writer
ANNE D'INNOCENZIO
The Associated PressChiefs coach Andy Reid first met Brett Veach after he'd been recommended for an internship with his Philadelphia Eagles.