NEW YORK (AP) – Estee Lauder is cutting three per cent to five per cent of its global workforce as part of a restructuring programme that aims to increase profits and become more nimble in a challenging international environment.
The layoffs were announced on Monday as the New York cosmetic giant reported falling profits and revenue in the second quarter, and trimmed its annual profit forecast.
The downsizing which will affect as many as 3,100 workers, will be made by July, Estee Lauder said. The company employed 62,000 workers worldwide, according to its latest regulatory filing. The company, whose brands include Clinique, Tom Ford and La Mer, said it expects to take restructuring and other charges of between USD500 million and USD700 million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing the initiative.
