Estee Lauder to cut 2,000 jobs due to coronavirus pandemic
Beauty brand Estee Lauder is preparing to cut up to 2,000 jobs due to the impact of the coronavirus pandemic on demand.
The firm said it will slash between 1,500 to 2,000 jobs, or about three per cent of its workforce globally.
It also said it is planning to close between 10 per cent to 15 per cent of its standalone stores.
Estee Lauder chief executive Fabrizo Freda said: “Through the Post-Covid Business Acceleration Program announced today, we are better aligning our brick-and-mortar footprint to improve productivity and invest for growth.
“We are well-positioned to drive growth as the market dynamics support it, yet remain equally mindful of the effects of Covid-19 on consumers, the retail sector and economics, in general, as well as geopolitical uncertainty.”
Today Estee Lauder posted a 32 per cent decline in sales in the fourth quarter due to store closures and a drop in demand for make-up as consumers work from home.
The company reported a loss of 53 cents per share, bigger than analyst estimates of a 19-cent loss.
The beauty giant forecast first-quarter adjusted profit per share to be between 80 cents and 85 cents, below estimates of $1.22, Reuters reported.
Sales are also expected to plunge between 12 per cent and 13 per cent, compared to expectations of an 11.42 per cent drop. Sales trends are expected to improve each quarter, Freda daid.
Estee Lauder today reinstated its quarterly dividend payment after suspending it in April.