Estee Lauder ups job cut estimate to 9,000-10,000 from 5,800-7,000

Estee Lauder (EL) said in its earnings release that is now estimates a final net reduction in positions of 9,000 to 10,000, an increase from 5,800 to 7,000. “Over 70% of the increase is attributable to the reduction in point-of-sale demonstration roles at select unproductive doors in its department store and freestanding store channels, as the Company continues to evolve its focus towards high-growth channels,” Estee said in a statement. The company has recognized total cumulative charges under its restructuring plan of $1.1B, consisting primarily of employee-related costs. Estee said the restructuring program’s focus includes the reorganization and rightsizing of certain areas, simplification and acceleration of processes, outsourcing of select services and “evolution of go-to-market footprint and selling models, all to help rebuild operating margin and also fuel reinvestment in consumer-facing areas to drive sustainable sales growth.”