Having just announced lower results for the second quarter of the 2023-2024 financial year, the cosmetics and fragrances group has decided to cut 3-5% of its payroll.
Faced with a difficult economic climate, Estée Lauder Companies (ELC) is taking the bull by the horns.
Having just announced a downturn in second-quarter results (to the end of December) for the 2023-24 financial year, albeit ahead of expectations, the American cosmetics and fragrances group has announced a restructuring plan aimed at boosting profitability by 2025-2026.
3 to 5% reduction in workforce
Estée Lauder Companies (ELC) plans to cut 1,800 to 3,000 jobs, or 3% to 5% of its global workforce (60,000 positions as at June 30, 2023). The profile of the positions concerned was not specified.
“We are at an inflection point,” Estée Lauder CEO Fabrizio Freda told analysts on a conference call. “While this plan is a difficult decision, we believe it will enable the company to return to stronger, more sustainable profitability, while supporting the acceleration of sales growth and increasing agility and speed to market.”
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Featured Photo: © Estée Lauder
