Estee Lauder to cut up to 2,000 jobs
The Estee Lauder Companies has announced plans to cut up to 2,000 jobs after sales fell by 4% to $14.29 billion in the year to 30 June.
Excluding the impact of currency translation, net sales decreased by 3% following store closures due to Covid-19, although this was partially offset by a surge in online sales.
Fabrizio Freda, president and chief executive, said: “Fiscal 2020 was a year without parallel, as we delivered record sales and exceptionally strong adjusted EPS growth in our first half and navigated with agility through an unprecedented pandemic in our second half.”
Looking ahead, the company said the big shift to online shopping brought about by the Covid-19 pandemic means it will be reducing its retail footprint across the world and increasing its investment in its online capabilities. This will result in the closure of between 10% and 15% of freestanding stores and the loss of up to 2,000 jobs. This equates to around 3% of its global workforce.
In addition to Estee Lauder, the company owns a raft of beauty brands such as Clinique, Jo Malone, Bobbi Brown, Aveda and La Mer.
