Estee Lauder to Lay Off 3,000 Employees Amid Restructuring Efforts
MAC cosmetics owner Estee Lauder to cut 3,000 more jobs
The Economic Times
Image: The Economic Times
Estee Lauder Companies, the owner of MAC and La Mer, plans to cut up to 10,000 jobs globally, increasing its previous target of 7,000. This move aims to generate an additional $200 million in savings as the company shifts focus to online sales channels.
- 01Estee Lauder plans to cut a total of 10,000 jobs, up from 7,000.
- 02The company aims to save an additional $200 million through these layoffs.
- 03Shares of Estee Lauder rose by 13% following the announcement.
- 04The job cuts are part of a strategy to shift sales online.
- 05The company is restructuring to improve performance after a challenging year.
Advertisement
In-Article Ad
Estee Lauder Companies, which owns brands like MAC and La Mer, announced plans to cut up to 10,000 jobs globally, increasing its previous target of 7,000. This decision is part of a broader restructuring strategy aimed at generating an additional $200 million in savings. The company's workforce currently stands at approximately 57,000 employees. Following the announcement, Estee Lauder's shares surged by 13%, recovering from a 27% decline earlier this year, while the S&P 500 Index saw a modest 5% gain. The job reductions will primarily affect positions in U.S. department stores as CEO Stephane de La Faverie pivots towards online sales through platforms like Amazon and TikTok Shop. RBC Capital Markets analyst Nik Modi noted that these restructuring efforts indicate that the company is on a path to recovery.
Advertisement
In-Article Ad
The job cuts may lead to significant changes in employment in the beauty sector, particularly in U.S. department stores.
Advertisement
In-Article Ad
Reader Poll
Do you support Estee Lauder's decision to cut jobs to focus on online sales?
Connecting to poll...
Read the original article
Visit the source for the complete story.