The cosmetic company Estée Lauder will cut up to 7,000 jobs and warned of a strong Sales fall At the beginning of the new year due to a weak demand for its products, especially in the Asian market. In the New York Stock Exchange, the company registered losses of 16.93%, falling to 19% in times of the morning of this Tuesday.
The company, which encompasses makeup brands Mac, Clinique and Jo Malonesaid a reduction in jobs from 5,800 to 7,000, after professional recycling and redistribution of certain employees in several selected areas, a procedure that they hope that ends in 2026. Estée Lauder has already begun to make cuts between 1,800 and 3,000 positions work in the workforce in 2023 to combat sales falls, according to The Wall Street Journal.
He also expects Third quarter gains are much lower To expectations, due to the challenges in his retail travel business in Asia, especially the stores found in airports and destinations in South Korea and China, in relation to “world geopolitical uncertainty.” Therefore, the company provides “continuous volatility and low visibility in the short term,” according to the statement.
“To revive the growth of our retail sales, we are strategically increasing consumer -oriented investments worldwide in the third quarter,” said the president and executive director, Stéphane of the Faverie. The company’s last quarterly report revealed that it had a loss of 590 million dollars in the last three months of 2024with a 6% drop in income.
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