Estee Lauder Implements Restructuring Effort Amid Slowing Sales and Global Uncertainty Note that this title accurately reflects the main topic of the article, which is Estee Lauder's decision to restructure and cut jobs in response to slowing sales and global uncertainty.

Estee Lauder Implements Restructuring Effort Amid Slowing Sales and Global Uncertainty

Estee Lauder, a global leader in beauty cosmetics, has announced plans to cut up to 7,000 jobs by fiscal 2026 as part of a significant restructuring effort aimed at transforming its operating model. This strategic move is intended to enable the company to navigate a challenging market characterized by slowing sales and global geopolitical uncertainty.

In its latest quarterly report, Estee Lauder disclosed a 6% decline in sales, with profits expected to take a hit due to the job cuts. The company anticipates booking restructuring charges between $1.2 billion and $1.6 billion before taxes, which will have a material impact on its financials.

The decision to reduce headcount is a response to the challenging market conditions facing Estee Lauder, including slowing economies in China and Korea, as well as global geopolitical uncertainty. We are significantly transforming our operating model to be leaner, faster, and more agile, said Stéphane de La Faverie, CEO of Estee Lauder.

The job cuts will affect employees across the company's global workforce, which stood at approximately 62,000 as of June 30, 2024. The company's portfolio includes prominent brands such as MAC, La Mer, and Aveda, among others.

Estee Lauder's stock price reacted sharply to the news, plummeting 16% to $69.47 on Tuesday, its largest one-day decline in nearly two years. As a result, the company now expects profit per share between 24 cents and 34 cents in the current quarter, significantly below Wall Street expectations.

As Estee Lauder navigates this challenging period, it will be crucial for the company to prioritize employee support and development, as well as invest in digital transformation initiatives to drive growth and profitability.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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