Estée Lauder To Cut Up To 7,000 Jobs In Corporate Overhaul

Estée Lauder Cos. announced plans to eliminate between 5,800 and 7,000 positions as part of a corporate restructuring aimed at reviving sales growth under its new chief executive officer, Jeanette Neumann reported for Bloomberg News5.

Estée Lauder highlighted ongoing struggles in its duty-free business in Asia, as well as weak consumer sentiment in China and South Korea. I Photo: Estée Lauder Facebook

The owner of the Clinique and MAC brands projected a sharper-than-expected revenue decline for the current quarter and refrained from providing a full-year financial outlook, citing "evolving global uncertainty" in a statement.

The company expects net sales to drop between 10% and 12% in the three months ending March 31, surpassing analysts' expectations of a 6.8% decline, according to Bloomberg's compiled estimates.  

Adjusted earnings per share also fell short of projections.

Estée Lauder highlighted ongoing struggles in its duty-free business in Asia, as well as weak consumer sentiment in China and South Korea, warning of "continued volatility and low visibility in the near term."

It also cited potential disruptions from rising global tariffs but did not directly address the tariff uncertainty triggered by U.S. President Donald Trump’s recent policy moves.