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Estée Lauder Cos. sees its restructuring efforts adding up to as much as $1.75 billion in cumulative charges as the cosmetics conglomerate looks to improve efficiency and bolster results.
The total is an increase from a previous projection of about $1.55 billion in charges, according to a filing on Tuesday. The charges are related to job cuts and workforce reductions in addition to asset-related costs, contract terminations and other expenses.
Estée Lauder, which has said that it’s shedding as many as 10,000 jobs, is shifting its focus to faster-growing sales channels like Amazon and TikTok Shop. The company, which is rebounding from a period of sluggish sales, has added lower-priced items to appeal to younger shoppers. It’s also looking to exit an office lease, according to the filing.
The shares were little changed in extended trading in New York. The stock has declined 19 percent this year through Tuesday’s close, while the S&P 500 Index has advanced nearly 10 percent.
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By Marc Davies
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At Estée Lauder Companies, Growth Remains Elusive
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