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Estee Lauder expands restructuring plan with 7,000 job cuts, posts sales beat
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Estee Lauder expands restructuring plan with 7,000 job cuts, posts sales beat
Feb 4, 2025 3:51 AM

Feb 4 (Reuters) - Estee Lauder ( EL ) on Tuesday

expanded its restructuring plan that would include up to 7,000

job cuts and posted smaller-than-expected drop in second-quarter

sales.

Shares of the company, which fell about 49% last year, were

marginally down in premarket trading.

The company said that the expanded plan is to help Estee

Lauder ( EL ) return to sales growth and restore a solid double-digit

adjusted operating margin over the next few years along with the

aim to "manage external volatility, such as potential tariff

increases globally."

As part of its turnaround efforts to drive profit

recovery, the company has been implementing restructuring

programs, which include a series of changes in the executive

team after Stéphane de La Faverie took on the role of Chief

Executive Officer in January.

Estee Lauder ( EL ) expects to take restructuring and other

charges of between $1.2 billion and $1.6 billion, before taxes,

consisting of employee-related costs, contract terminations,

asset write-offs, and other costs associated with implementing

these initiatives.

The company's sales fell 6% to $4 billion in the quarter,

compared with analysts' estimates of 7.3% drop to $3.97 billion,

as per data compiled by LSEG.

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