New York, February 5: Estee Lauder, a US-based global beauty company, plans to reduce its workforce by cutting thousands of jobs. It is estimated that the upcoming Estee Lauder layoffs will affect up to 7,000 employees, which is roughly 11% of the company's total workforce. The beauty and skincare company introduced these job cuts as a part of its restructuring plan.

According to reports, the cosmetic giant Estee Lauder suffered from weakening demand in Asia, which affected its market position and brought down its shares by 19%. This reportedly resulted in the company posting a poor third-quarter profit. Estee Lauder addressed the challenges related to the Asia travel retail business in travel destinations and airports in Korea and China. Layoffs 2025: Google, Meta, BlackRock, Microsoft, CNN, Starbucks and More, Check List of Companies Cutting Jobs This Year to Stay Productive and Focus on AI.

Reuters reported that  Estee Lauder CEO Stephane de La Faverie stated that the company expected soft retail trends to continue in Asia travel retail, which would pressure its organic net sales. In Asia,  luxury beauty and skincare companies face major challenges, as in China. The report said it accounted for nearly a quarter of the company's sales in 2024 amid high employment and a struggling economy.

Stephane de La Faverie said that Estee Lauder did not capitalise on the high growth opportunities and said that the new strategy would include luxury price tiers and more investment in consumer-facing initiatives. This decision was praised by eMarketer analyst Sky Canaves, who said that the company took the plan in the "right direction and further added that it still had a long way to prove innovation and adaptability to meet the needs of young beauty consumers. ADM Layoffs: After Rival Cargill Layoffs, Another US Agri-Business Archer Daniels-Midland To Cut Jobs Amid Low Crop Prices and Reduced Profit.

The report mentioned that the Estee Lauder layoffs will affect an estimated 5,800 to 7,000 employees by the end of fiscal 2026. The layoffs are also part of the company's expansion plan, which it announced in February. Estee Lauder said that it would reduce nearly 5% of its global workforce as part of this expansion.

 

(The above story first appeared on LatestLY on Feb 05, 2025 10:20 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).