Esteee Lauder, employing over 60,000 people, implements a restructuring program, which includes reduction of a large amount of full -time jobs. In total, about 7,000 may lose their jobs. people, but the company itself will also bear the huge costs of the project, related to, among others with termination of contracts with such a large number of employees. The company estimates its expenses for restructuring at around $ 1.6 billion. Its first stage, including a exemption of 3.2 thousand. employees, cost $ 747 million.
See also: The creator of the Cosmetic Empire died. He left a property worth $ 15.6 billion.
Esteee Lauder. Decrease in sales in duty -free stores
– This is the largest organizational transformation we have carried out in our history – said the president of Stéphane de la Faverie during a quarterly teleconference with investors, quoted by Market Watch. He added that the market is evolving and changes are necessary to be able to implement the company's developmental ambitions.
Estée Lauder shares were to fall on Wednesday by about 5 percent After the cosmetics manufacturer warned against the loss of profits this year and informed about the approval of the restructuring plan. Its implementation is to bring annual savings of the order from $ 800 million. up to $ 1 billion The effect is to be an increase in the operational margin and “stimulating reinvestment into consumer -oriented areas, which will translate into a sustainable increase in sales” – informs the company.
In the fourth quarter of the financial year, which ends on June 30, Estee Lauder announced the decreases in sales. The main reason is the deterioration of the situation in the tourism industry – it is about selling luxury items in duty -free shops at airports and cruise ships terminals. The company also pointed to reduced moods in continental China and more stringent than so far inventory management by some retail sellers.
