Estee Lauder plans up to 3,000 cuts, targets $200 million savings
Estee Lauder is planning to cut as many as 3,000 more employees, bringing the potential total to as many as 10,000 roles as the company tries to bounce back from three years of falling sales.
CEO Stephane de La Faverie is leading the charge and shifting focus toward online sales on platforms like Amazon and TikTok Shop, aiming for $200 million in savings.
Estee Lauder layoffs save $1.2B pre-tax
Some of these layoffs will hit US department stores and are expected to save Estee Lauder $1.2 billion a year before taxes.
The company has actually raised its profit outlook—now expecting $2.35 to $2.45 a share—and is targeting a modest sales growth of 3%.
After Stephane de La Faverie became CEO, shares jumped nearly 60%, but have since dropped by 27% this year amid disappointing results and ongoing merger talks with Puig Brands SA.
Still, many see the digital push as a much-needed move for a fresh start.