Estée Lauder Restructures Amid Job Cuts and Stock Decline

Estée Lauder is planning to cut between 5,800 to 7,000 jobs as part of a corporate restructuring effort aimed at returning the company to growth amid declining sales and geopolitical uncertainties. The company, which owns brands like Clinique and MAC, reported a surprise quarterly loss of $590 million and a 6% drop in sales, largely due to weakened demand in Asia and the impact of tariffs. The restructuring plan, involving significant cost-cutting measures, is set to be completed by fiscal 2027 and aims to save up to $1 billion. Challenges in the Asia travel retail sector, subdued consumer sentiment, and strong competition from newer beauty brands are core issues the company faces. CEO Stéphane de La Faverie has launched a strategic plan called 'Beauty Reimagined' to transform the operating model and drive profitability. Estée Lauder's stock has declined significantly, losing about half its value over the past year, reflecting the company's ongoing struggles.