Estee Lauder to cut thousands of jobs, warning of tariff impact
Published On Feb 4, 2025, 12:20 PM
Estee Lauder plans to cut between 5,800 and 7,000 jobs as part of a restructuring effort in response to uncertain market conditions stemming from potential U.S. tariffs. The company reported a quarterly loss due to decreased consumer spending, particularly in China and Korea. Their aim is to save approximately $1 billion and transform into a more agile organization. The situation reflects broader market concerns regarding the impact of tariffs on various industries, including consumer goods and luxury brands.
Stock Forecasts
EL
Negative
Estee Lauder is facing significant headwinds due to its cost-cutting measures, reduced consumer spending, especially in key markets, and the looming uncertainty created by potential tariffs. These factors are likely to adversely impact stock performance in the near term.