Late at night on February 5, Beijing time, The Estee Lauder Companies released its financial report for the second quarter of fiscal year 2024The company announced that it will cut 3% of its workforce as part of its profit recovery plan for fiscal years 2025 and 2026, which is expected to affect 1,800-3,000 employees.
Faced with the complexity of the global economy and the intensification of competition in the industry, Estée Lauder decided to take measures to reduce employees to meet the challenges. It is reported that Estee Lauder has about 620,000 employeesThe layoffs will involve all divisions and regions of the company. Estee Lauder said it would bear pre-tax restructuring costs of $500 million to $700 million to ensure the smooth implementation of the layoff plan.
Regarding the layoffs, The Estée Lauder Companies said that it is to achieve profit recovery targets for fiscal years 2025 and 2026 and improve the company's operational efficiency and profitability. The company expects to drive an increase in operating profit of $1.1 billion to $1.4 billion through layoffs and broader restructuring plans. This will help the company maintain a steady development momentum in the coming years and further enhance its market position and brand influence.
It is worth noting that although the layoff plan will have an impact on some employees, Estee Lauder stressed that the company will do its best to reduce the impact of the layoffs on employees and provide necessary support and assistance. At the same time, the company will continue to strengthen the cultivation and introduction of talents, and lay a solid talent foundation for future development.
On February 6, Estee Lauder told the 21st Century Business HeraldThe Estée Lauder Companies has no major plans to adjust in the Chinese market.