Estee Lauder announce plans to cut up to 2,000 jobs

Global cosmetics giant Estee Lauder has today announced plans to cut up to 2,000 roles across the world, as the coronavirus pandemic hits the make-up market.

Revenues for the US firm – which operates in over 150 countries – fell 32% to $2.4bn in the final quarter of its financial year (March to June), with the first six months os sales falling 18% compared to the same period in 2019.

Estee Lauder’s senior leadership revealed that the COVID-19 crisis had severely reduced the amount of make-up that people were buying in-store and online, and so up to 2,000 roles within that section of the business were now at risk as a result.

Its results suggested tentative signs of recovery, led by China, though it forecast a 13% fall in revenue in the current first quarter compared to the same period a year ago.

Fabrizio Freda, Estee Lauder’s CEO said: “Our strategic priorities for fiscal 2021 rightly balance investment in these engines with cost discipline amid the ongoing pandemic. Through the Post-COVID Business Acceleration Program announced today, we are better aligning our brick-and-mortar footprint to improve productivity and invest for growth.

“We are well-positioned to drive growth as the market dynamics support it, yet remain equally mindful of the effects of COVID-19 on consumers, the retail sector and economics, in general, as well as geopolitical uncertainty.”