Estee Lauder Announces Global Workforce Reduction

The cosmetics giant aims to streamline operations and cut costs amid sales challenges, particularly in China and the Middle East.

Estee Lauder announces layoffs affecting 3% to 5% of its global workforce, aiming to increase profits and become more nimble.
The restructuring plan includes job cuts, asset write-offs, and other costs, with expected charges between $500 million and $700 million.
The company reports a sales decline of 7% in the most recent quarter, with significant challenges in China and the Middle East.
Estee Lauder expects the restructuring to yield annual savings of $350 million to $500 million and drive incremental operating profit of $1.1 billion to $1.4 billion over the next few years.
Despite the layoffs, Estee Lauder's share price rose more than 13% in late morning trading.