Estée Lauder Slashes Annual Profit Forecast and Plans to Cut 3-5% of Jobs

MAC lipstick maker Estée Lauder slashed its annual revenue forecast on Monday and introduced a restructuring programme aimed toward slicing about 3 p.c to five p.c of its workforce to rein in prices.

The corporate stated it will begin the programme within the third quarter of fiscal 2024 and expects to tackle restructuring and different prices of between $500 million and $700 million, earlier than taxes.

As of June 2023, Estée Lauder had about 62,000 workers worldwide. The corporate had round 71 p.c full-time workers, about 16 p.c momentary and 13 p.c part-time workers.

Final quarter, in an try and decrease its expenditure and rebuild margins, Estée Lauder had outlined a plan for fiscal years 2025 and 2026. The corporate now expects to drive incremental working revenue via the initiatives within the revenue restoration plan of $1.1 billion to $1.4 billion.

It expects full-year 2024 adjusted revenue per share between $2.08 and $2.23, in contrast with the prior forecast of $2.17 and $2.42.

By Ananya Mariam Rajesh; Editor: Pooja Desai

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