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.”