Estée Lauder to Cut Up to 7,000 Jobs Following $590 Million Quarterly Loss

The beauty giant's 'Beauty Reimagined' strategy aims to address declining sales, particularly in Asia, and restore profitability through restructuring and innovation.

Estée Lauder reported a 6% drop in Q2 revenue to $4 billion, with operating income swinging to a $580 million loss compared to a $574 million gain last year.
The company plans to lay off between 5,800 and 7,000 employees, representing up to 11% of its global workforce, as part of a restructuring initiative.
Sales declines were driven by weak performance in the skincare category (down 12%) and Asia-Pacific markets (down 11%), particularly in travel retail and China.
CEO Stéphane de La Faverie introduced the 'Beauty Reimagined' strategy, focusing on faster product innovation, streamlined operations, and increased consumer engagement.
Estée Lauder shares have fallen over 50% in the past year, with a 17% drop following the latest earnings report and revised profit outlook.