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In the fall of 2024, Estee Lauder, parent
company to major brands like Clinique and Mac
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Lipstick, announced a planned turnaround after
declining sales led to the company to withdraw
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its forecasts and reduce its dividend.
At the time,
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the company, which employs around 62,000, said
it would.
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Cut 3000 jobs to reduce millions in costs.
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This week, the New York-based company revealed
its latest quarterly results,
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and with it, the company says it sees the need
to double down on its cost cutting plan.
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Estee Lauder’s second quarter was marked by a
sales decrease of 6%.
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But perhaps the worst part of the report was
its 3rd quarter forecast,
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which portends profits well below estimates.
In response,
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the company says it plans to increase its job
cuts significantly.
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On the high end, Estee Lauder says it could
eliminate 7000 positions,
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more than double its previous estimate.
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The firm says it plans to cut a billion dollars
in costs.
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And that the job cuts will conclude by mid next
year.
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Estee Lauder blames weak demand, pointing
especially to airport sales as well as its
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business in Asia.
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But the company also says its aggressive plan
aims to manage external volatility,
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such as potential tariff increases globally.
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A trade war could make for a.
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Ride Like many companies with a global
footprint, Estee Lauder manufactures goods all
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across the world, with factories in Africa,
Asia, Europe,
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the Middle East, and the Americas.
Besides the job cuts,
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the company plans to invest in innovation at
various price points to attract a greater
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variety of customers in hopes of improving
turnaround efforts.
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I’m David Manti.
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This is manufacturing now.