(Reuters) – MAC lipstick maker Estee Lauder slashed its annual profit forecast on Monday and announced a restructuring program aimed at cutting about 3% to 5% of its workforce to rein in costs.
The company said it would start the program in the third quarter of fiscal 2024 and expects to take on restructuring and other charges of between $500 million and $700 million, before taxes.
As of June 2023, Estee had about 62,000 employees worldwide. The company had around 71% full-time employees, about 16% temporary and 13% part-time employees.
Last quarter, in an attempt to lower its expenditure and rebuild margins, Estee had outlined a plan for fiscal years 2025 and 2026. The company now expects to drive incremental operating profit through the initiatives in the profit recovery plan of $1.1 billion to $1.4 billion.
It expects full-year 2024 adjusted profit per share between $2.08 and $2.23, compared with the prior forecast of $2.17 and $2.42.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Pooja Desai)
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