Estee Lauder cuts thousands of jobs to counter sales slump

In recent months, Estee Lauder, a major global beauty company known for brands like Clinique and MAC, announced significant workforce reductions in response to declining sales and profits. The restructuring plan will see job cuts ranging from 5,800 to a staggering 7,000, affecting more than 11% of the company's workforce, which currently stands at approximately 62,000 employees worldwide. The company is undertaking these measures to enhance cost savings in excess of $1 billion as it faces potential tariff increases and a challenging economic environment, particularly in key markets such as China and Korea. Such changes come after a reported net loss of $590 million for the second quarter of its fiscal year, highlighting its ongoing struggles with poor retail demand, especially in travel retail environments. Foreshadowing deeper challenges ahead, the new CEO, Stephane de La Faverie, noted that while the company is focused on boosting consumer-facing investments, the outlook for recovery in sales remains uncertain, particularly regarding trends observed in Asian markets. Estee Lauder's job cuts are expected to occur by the end of June 2026, as part of a comprehensive effort to reshape its operational model to become more efficient and better positioned to handle external pressures and market volatility. The company aims to establish a stronger footing to restore profitability and growth over the coming years.