The New York firm, owner of iconic brands such as Mac, Lick and AVEDA, adjusted its profit forecasts Due to the economic slowdown in China and South Koreain addition to geopolitical uncertainty worldwide.
The cosmetics giant Estée Lauder Plan reduce up to 7,000 jobs for fiscal year 2026which is equivalent to more than 11% of its global workforce. The decision comes after the cosmetics company reported losses in its most recent quarter and a 6% drop in its sales.
The New York firm, owner of iconic brands such as Mac, Lick and AVEDA, adjusted its profit forecasts Due to the economic slowdown in China and South Koreain addition to geopolitical uncertainty worldwide.
Restructuring and Millionaire Losses
To face this crisis, the company estimates that it will incur restructuring costs and other expenses associated with layoffs, that will range between US $ 1,200 yu $ 1,600 million,
Until June 30, 2024, Estée Lauder had approximately 62,000 employees worldwide, according to their latest annual report. “We are doing a significant transformation in our operational model to become more efficient, fast and agile,” he said Stéphane de la Faveriewho assumed as CEO of the company last month.
In its last quarter, the company reported revenues for US $ 4,000 million, a decrease compared to US $ 4,280 million obtained in the same period of the previous year.
In addition, the company reduced its forecast of earnings per share for the current quarter to a range of between 24 and 34 cents, well below the 61 cents projected by Wall Street, according to Factset.
The news hit the markets: The Estée Lauder Companies Inc. actions fell 16%, closing at US $ 69.47, marking its greatest decrease in almost two years.
Source: Ambito
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