By Dean Seal
Estée Lauder said it now expects to cut between 5,800 and 7,000 positions as part of its two-year restructuring plan.
The beauty company said Tuesday that it is expanding the restructuring effort and now forecasts $1.2 billion to $1.6 billion in pretax charges tied to employee-related costs, contract terminations, asset write-offs and other expenses.
In December, Estée Lauder pegged the restructuring plan's total costs at $500 million to $700 million pretax.
Shares fell 7.6% to $76.50 in premarket trading.
The overhaul is expected to yield $800 million to $1 billion, before taxes, in annual benefits, which should help restore operating margins and be reinvested in consumer-facing areas, the company said.
Estée Lauder launched the restructuring in November 2023 with a goal of expanding margins in 2025 and 2026 by focusing on profitability, lower costs and accelerating sales growth.
The job cuts figure was delivered on Tuesday alongside the New York-based company's latest quarterly report, which showed it swinging to a loss in the last three months of 2024 on a 6% drop in revenue.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 04, 2025 08:08 ET (13:08 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.