Estée Lauder Companies to cut job roles
Cosmetics giant Estée Lauder Companies is to implement a restructuring programme as part of its ongoing profit recovery plan.
Due to begin during the company’s third quarter, it will include the “reorganisation and rightsizing” of certain areas of the company as well as a “simplification and acceleration” of processes.
The company is expecting to reduce its workforce by around 3% to 5% following the elimination of some positions and the retraining and redeployment of some employees. The profit recovery plan has been designed to improve gross margin, lower its cost base and reduce overhead expenses, while increasing investments in consumer-facing activities.
Estée Lauder Companies posted a 7% decline in net sales to $4.28 billion in its second quarter ending 31 December. In addition to the Estée Lauder cosmetics brand, the company owns a raft of other brands including The Ordinary, Clinique, Bobbi Brown Cosmetics and Jo Malone London.
Fabrizio Freda, president and chief executive of the group, said: “In the second half of fiscal 2024, we are positioned to return to strong organic sales growth and expand our profitability from the first half.
“Moreover, today we have announced that we are further expanding our profit recovery plan, which benefits fiscal years 2025 and 2026, to include a restructuring program.
“We believe this now-larger plan will better position the company to restore stronger, and more sustainable, profitability while also supporting sales growth acceleration and increasing agility and speed-to-market.”