UBS Financial Advisor Brenda O’Connor Juanas and Sitt Investment Associates Senior Vice President Bryce Doty preview the fourth quarter earnings report, discuss the Walmart stock grant and discuss the economic outlook.
Cosmetics company Estée Lauder announced on Monday that it will cut up to 5% of its workforce worldwide as part of a restructuring plan.
The company, which employs about 62,000 people worldwide, said the cuts would affect up to 3,000 jobs.
Layoffs will skyrocket in 2024: Here are the companies that will be laid off
Estée Lauder store in Hong Kong. (Budrul Chukrut/SOPA Images/LightRocket via / Getty Images)
Estée Lauder said the job cuts were due to a new restructuring program focused on “reorganizing and right-sizing specific areas within the company, as well as simplifying and accelerating processes.” This is expected to begin during the company’s fiscal third quarter.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Elle | ESTEE LAUDER COMPANIES INC. | 152.20 | +18.14 | +13.53% |
The company expects restructuring and other costs to be between $500 million and $700 million before tax.
With this restructuring, the cosmetics company expects total annual pre-tax savings to be in the range of $350 million to $500 million.
The turnaround plan marks an expansion of the cosmetics company’s “profit recovery plan” for fiscal 2025 and 2026, which it began promoting in November.
January Job Breakdown: Which industries hired the most workers last month?
Estée Lauder’s second quarter financial results included net sales of $4.28 billion and net income of $313 million. The low-single-digit decline in net sales is related to the economic downturn in China and business disruption in the Middle East.
estee lauder companies
Urgent reduction of 10% of global workforce
Chief Executive Officer Fabrizio Frida said: “With our larger plans, we will be stronger and more sustainable, while supporting accelerated sales growth and increased agility and speed to market.” We can restore profitability.”
Estée Lauder cosmetics counter in Los Angeles on August 19, 2019. (Lucy Nicholson/Reuters)
According to the company, the reorganization is expected to have an incremental impact on operating income of $1.1 billion to $1.4 billion, based on the company’s profit recovery plan.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Estée Lauder said: “We remain optimistic about the long-term outlook and future growth opportunities in the global prestige beauty space,” and said it is investing in “the brand’s strong capital and desirability” for growth. It added that it would strengthen the
Estée Lauder’s popular brands include Mac, Clinique, Too Faced, and Bobbi Brown.
