Estée Lauder will eliminate 10,000 jobs amidst negotiations for the merger with Puig

Estée Lauder grows in revenue and decreases in employment. The American giant, in full negotiations with Puig to close an agreement about the merger, has published the results of the accounts for the first nine months of the fiscal year, until March, which registered a gain of 298 million dollars. Estée Lauder, with these earnings, has explained that net sales rose 5%, to 11,422 million, although in the third quarter net profit decreased 44%, to 89 million. Despite this, the American group has improved its forecasts for the remainder of the fiscal year and expects organic net sales growth of 3%. The group has explained that it attributes the growth to the fragrance business, where it registered 12% more sales (from July to March), up to 2,161 million dollars.On the other hand, Estée Lauder has announced that it will eliminate between 9,000 and 10,000 jobs, although the previous estimate pointed to a range of between 5,800 and 7,000 jobs. The company has 57,000 employees worldwide, and this means that close to 20% of the workforce will be affected. This measure is part of the company's strategy to boost online sales through higher-growth channels such as Amazon and TikTok, and therefore, it is expected that the cuts will have a greater impact among department store employees. These measures are framed within the restructuring plan of executive director Stephane de La Faverie who assumed the position at the beginning of last year with the objective of reducing and redirecting the situation of Estée Lauder which had been chaining falls for three consecutive years.

Estée Lauder will eliminate 10,000 jobs amidst negotiations for the merger with Puig

The American giant has announced that it has earned 298 million dollars after consolidating Stephane de La Faverie's restructuring plan