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Estee Lauder to cut 3% to 5% of its employees after sales, profit slide in its most recent quarter, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>Business was dragged down by sluggish sales in China as well as disruptions in Israel and other parts of the Middle East</p>
Business was dragged down by sluggish sales in China as well as disruptions in Israel and other parts of the Middle East

NEW YORK: Estee Lauder is cutting 3% to 5% of its global workforce as part of a restructuring program that aims to increase profits and become more nimble in a challenging international environment.

The layoffs were announced Monday as the New York cosmetic giant reported falling profits and revenue in the second quarter, and trimmed its annual profit forecast.

Business was dragged down by sluggish sales in China as well as disruptions in Israel and other parts of the Middle East.

The downsizing, which will affect as many as 3,100 workers, will be made by July, Estee Lauder said. The company employed 62,000 workers worldwide, according to its latest regulatory filing.

The company, whose brands include Clinique, Tom Ford and La Mer, said it expects to take restructuring and other charges of between $500 million and $700 million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing the initiative.

Estee Lauder expects the restructuring program to deliver annual savings of between $350 million and $500 million, before taxes, Estee Lauder said.

The company now expects the job cuts and the broader restructuring plan to drive incremental operating profit of $1.1 billion to $1.4 billion over the next few years. That’s an…


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