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.
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