ESTEE LAUDER LAYOFFs JOB CUT: 2000 employees to be FIRED in next 4 years

Estee Lauder Layoffs

Estee Lauder has announced that it plans to begin a four year restructuring plan which will include

1. Freezing Merit raises.
2. Continuing its hiring freeze.
   
3. Cutting 2000 jobs.
   
4. Cut costs and inventory, and realign its geographic locations.
   

This restructuring plan would cost the company about $350 million to $450 million. Details on the 4th point as to what would be the precise nature of realigning geographic locations are not yet available.

Reasons for Estee Lauder Layoffs

The company reported a 30% fall in quarterly profits in the quarter that ended on December 31. Net profits of Estee Lauder fell to $158 million from $224 million in the same period last year. The company sales have been hurt by strong dollar and weak consumer spending. Sales fell across all categories, with skin care sales down 7 percent, makeup down 12 percent and fragrance down 20 percent. The scenario is not expected to improve in the coming fiscal and the global economic slowdown would continue to hurt sales- a company report said.
source: Nytimes.