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Estée Lauder to Cut 2,000 Jobs as Covid-19 Hits Sales

The cosmetics maker said quarterly sales will fall by up to 13 percent and plans to close 15 percent of its free-standing stores.
Estée Lauder store interior | Source: Shutterstock
By
  • Bloomberg

NEW YORK, United States — Estée Lauder Cos. plans to cut 1,500 to 2,000 jobs worldwide and boost its digital operations after coronavirus lockdowns hit demand for cosmetics.

With consumers shifting to more online purchases, the company said in an earnings release Thursday that it plans to close 10 percent to 15 percent of its free-standing stores. Estée Lauder said it expects to take restructuring and other charges of between $400 million and $500 million.

The company’s forecast for adjusted first-quarter earnings of 80 cents to 85 cents a share fell well short of analysts’ estimate of $1.22 a share. Estée Lauder said net sales in the current period will fall by 12 percent to 13 percent.

In the fourth quarter that ended June 30, sales bounced back in the Asia-Pacific region as China recovered from the pandemic but slumped in other regions.

The shares were 4.4 percent lower in premarket trading.

By Kim Bhasin.

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