New York, May 2: Estee Lauder, a US-based global beauty company, has started implementing layoffs affecting thousands of employees. The Estee Lauder layoffs have affected 2,600 employees out of the company's target of 7,000 people due to a sales drop. in February 2025, the luxury beauty and skin brand said that its upcoming layoffs would affect 7,000 employees, 11% of the total workforce. 

Estee Lauder layoffs are part of the company's restructuring plan amid the failing sales in Asia. The company reported a 10% decline in sales in the third quarter. The New York-based luxury beauty brand already said that its Asia travel retail business was going through some challenges in travel destinations and airports. Tech Layoffs 2025: 51,028 Employees Laid Off by 112 Companies So Far This Year Due to Various Reasons, 23,486 Laid Off in April Alone.

According to reports, Estee Lauder expects a larger double-digit sales drop in its global travel retail business in Q4 due to shifts in duty-free models in Korea and China, along with weak Chinese consumer demand. It also anticipates a full-year earnings decline, with 2025 EPS projected at USD 1.39, down from USD 2.59 in 2024. Estee Lauder saw a 42% drop in third-quarter profit to USD 306 million compared to USD 531 million in the previous year. Besides, the skincare giant also saw a 10% drop in revenue to USD 3.55 billion 

Despite the decline, adjusted earnings of 65 cents per share surpassed expectations of 31 cents. Revenue fell 10% to USD 3.55 billion, but it slightly exceeded forecasts of USD 3.52 billion. As of Thursday, Estee Lauder shares were down 20% in 2025, while the S&P 500 had declined 5.3%.

Estee Lauder Business Performance

Estee Lauder's business had been suffering in the Asia market, particularly in Korea and China. The company has already announced that by reducing the workforce, it could save up to USD 1 billion. The Estee Lauder layoffs targeting 7,000 jobs would be implemented this year. EA Layoffs 2025: Electronic Arts Lays Off Around 300 Employees, Including Roughly 100 Job Cuts at Respawn Entertainment.

More than 4,500 employees may lose their jobs in the upcoming months. To improve efficiency, the company would focus on cutting excessive inventory,troying products, and outsourcing some of its services. In 2024, the NYC-based company boasted 62,000 employees in its annual filling. 

(The above story first appeared on LatestLY on May 02, 2025 03:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).