On May 1, cosmetics giant Estee Lauder (Estée Lauder) raised its annual earnings outlook and announced an expansion of its layoffs. The company expects to cut 9,000 to 10,000 jobs worldwide—significantly higher than the previously projected 7,000.
According to Reuters, based on data as of the end of June last year, Estee Lauder's total global workforce was about 57,000. The new layoff target represents 17.5 of its global employees—close to two-fifths (nearly 20%). To speed up a broader restructuring plan, Estee Lauder decided to increase the scale of layoffs, projecting annual cost savings of about US$1.2 billion (approximately HK$9.4 billion).
Estee Lauder said that among the additional 3,000 layoffs, more than 70% are concentrated in department store counter staff. Reports indicate that this decision reflects changing global consumer habits: the selling effectiveness of traditional department store counters is rapidly declining, while faster-growing digital platforms are taking their place.
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