Estee Lauder Cuts 7000 Jobs

Estee Lauder has announced plans to reduce its workforce by up to 7000 positions as part of a restructuring effort. This decision comes after the company experienced a 6% drop in net sales during the second quarter of fiscal year 2025.

The layoffs are intended to streamline operations and improve profitability amid challenges like declining sales in Asia particularly in China and Korea where consumer sentiment has been subdued.

This move is part of Estee Lauder’s broader Profit Recovery and Growth Plan which aims to save between $800 million and $1 billion annually. The company expects to incur charges between $1.2 billion and $1.6 billion due to this restructuring.

Public reaction has been mixed. Some express sympathy for the affected employees understanding the necessity for companies to adapt to market changes.

Others criticize the move focusing on the human cost of corporate restructuring. They worry about the impact on local economies and the livelihoods of those laid off.

There’s also discussion on how this reflects broader trends in the luxury goods sector where companies are grappling with shifting consumer behaviors and economic pressures.

The community largely calls for support mechanisms for those affected by layoffs suggesting that companies like Estee Lauder should prioritize retraining and redeployment opportunities.

While some see this as a strategic move to ensure long-term viability others emphasize the need for corporations to handle such changes with greater responsibility towards their workforce.

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Estee Lauder announces layoffs of 7000 workers to streamline operations.

Estee Lauder cuts 7000 jobs in an effort to improve efficiency and profitability.

Estee Lauder reduces workforce by 7000 to adapt to market changes.

Estee Lauder to cut 7000 jobs in restructuring move.