Estee Lauder Expands Restructuring Plan, Cuts Jobs
Estee Lauder announced an expanded restructuring plan on Tuesday, including up to 7,000 job cuts. The company also reported a smaller-than-expected decline in second-quarter sales, with revenue falling 6% to $4 billion.
The plan aims to drive sales growth and restore double-digit adjusted operating margin in the coming years, while mitigating external risks like potential tariff increases.
Restructuring charges are expected to range from $1.2 billion to $1.6 billion, including employee costs, contract terminations, and asset write-offs.
Analysts had estimated a 7.3% drop in sales to $3.97 billion for the quarter. The company's shares were marginally down in premarket trading, after falling about 49% last year.