Serious layoffs at Estée Lauder

By: Trademagazin Date: 2024. 02. 07. 11:50

The Estée Lauder Companies is preparing for major structural changes in the third quarter of fiscal 2024 after its quarterly net profit fell 21% from a year earlier. The company decided in favor of restructuring after a 7% drop in sales already experienced in the second quarter, as part of which a 3-5% reduction in positions will take place. The planned measures include the elimination of jobs, the retraining and reassignment of employees.

The company’s spokesperson emphasized that the goal of the transformation is to increase business efficiency and achieve optimized operation. However, as a result, the program is expected to result in a gross loss of between $350 and $500 million. Estée Lauder employed nearly 62,000 employees in June 2023, and the company’s management is confident that the structural changes will contribute to their long-term success and sustainability.

The financial report shows that in the three months ended December 31, net sales fell 7% to $4.28 billion, while quarterly net profit was $313 million, down 21% from the same period last year. compared to The Estée Lauder Companies is therefore taking ambitious steps in response to sector challenges and to ensure the company’s long-term competitiveness.