MAC lipstick maker Estée Lauder slashed its annual profit forecast on Monday and announced a restructuring programme aimed at cutting about 3 percent to 5 percent of its workforce to rein in costs.
The company said it would start the programme in the third quarter of fiscal 2024 and expects to take on restructuring and other charges of between $500 million and $700 million, before taxes.
As of June 2023, Estée Lauder had about 62,000 employees worldwide. The company had around 71 percent full-time employees, about 16 percent temporary and 13 percent part-time employees.
Last quarter, in an attempt to lower its expenditure and rebuild margins, Estée Lauder had outlined a plan for fiscal years 2025 and 2026. The company now expects to drive incremental operating profit through the initiatives in the profit recovery plan of $1.1 billion to $1.4 billion.
It expects full-year 2024 adjusted profit per share between $2.08 and $2.23, compared with the prior forecast of $2.17 and $2.42.
By Ananya Mariam Rajesh; Editor: Pooja Desai
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