Estee Lauder to cut up to 7,000 jobs
Published On Feb 4, 2025, 12:01 PM
Estee Lauder plans to cut up to 7,000 jobs as part of its new 'profit recovery and growth plan' due to unexpected sales volume drop and rising costs. The company expects to incur restructuring charges of $1.2 billion to $1.6 billion but anticipates annual savings of $800 million to $1 billion. This restructuring is aimed at restoring growth and improving profit margins over the coming years.
Stock Forecasts
EL
Negative
Estee Lauder's decision to cut jobs typically indicates cost-cutting measures in response to financial challenges. The significant drop in share price following this announcement suggests investor uncertainty and concern about the company's future prospects. However, if the restructuring efforts lead to the anticipated savings and help restore growth, there could be a positive turnaround in the longer term.
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