NEW YORK By fiscal 2026, Estee Lauder may lay off up to 7,000 employees, or more than 11% of its staff, following a 6% decline in sales and a loss in the company’s most recent quarter.
In addition to the global geopolitical unpredictability, the New York-based corporation that owns brands like MAC, La Mer, and Aveda reduced its earnings estimate as the economies of China and Korea slowed.
Minutes after U.S. President Donald Trump’s broad tax on Chinese goods went into force, China declared on Tuesday that it would launch an antitrust investigation against Google and put retaliation tariffs on certain American imports.
Estee Lauder anticipates booking between $1.2 billion and $1.6 billion before taxes for restructuring and other charges associated with the job cutbacks.
According to their most recent annual report, Estee Lauder employed about 62,000 people worldwide as of June 30, 2024.
CEO St. Phane de La Faverie, who took over as the company’s top executive last month, stated, “We are drastically changing our operating model to be leaner, faster, and more agile.”
Compared to $4.28 billion during the same period last year, the company’s most recent quarter sales were $4 billion.
According to FactSet, Estee Launder now projects a profit of 24 to 34 cents for the current quarter, which is far less than the 61 cents that Wall Street had anticipated.
The Est é Lauder Companies Inc.’s stock dropped $12.14, or over 15%, on Tuesday.
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