NEW YORK (AP) — Estée Lauder will cut between 3% and 5% of its global workforce as the cosmetics giant aims to increase profits and become more agile in a challenging international environment.
The layoffs were announced Monday, as the New York company reported lower fourth-quarter profits and revenue, dragged down by weaker sales in China. Estée Lauder said the job cuts will affect up to 3,100 employees and are expected to take effect by July. The company employs 62,000 people worldwide, according to its latest regulatory filing.
The company, whose brands include Clinique and La Mer, reported pre-tax restructuring and other costs of $500 million to $700 million, consisting of employee-related costs, contract terminations, asset write-offs and other business-related expenses. He said he expected it to take longer. We are implementing initiatives.
Estée Lauder said the job cuts are expected to save the company between $350 million and $500 million a year before taxes.
Estée Lauder joins a growing list of companies that have announced layoffs in recent weeks, including well-known names like Amazon, Google, and UPS. But U.S. businesses and other employers surged by 353,000 jobs in January. This was the biggest job gain of the year, despite repeated interest rate hikes by the US Federal Reserve to cool the US economy and curb inflation.
Estee Lauder stock rose more than 14%, or $19.36, to $153.48 in morning trading.
