The reduction represents up to 11% of the total global labor, with plans to eliminate some jobs after retraining and redistribution of certain employees. This move will cost between 1.2 and 1.6 billion dollar restructuring costs, including costs related to employees, termination of the contract and write-off of assets.
Net sale of the company for the quarter ended 31. December fell 6% compared to the previous year to $ 4.28 billion. Estée Lauder achieved a net loss of $ 590 million in a quarter with $ 324 million in the previous year earnings.
The announcement of the cancellation on Tuesday is a significant expansion of plans that Estée Lauder divided last February, which required a decrease in labor around the world for up to 5 percent or 3,000 people. Now changes are expanded to C-suite.
Estée Lauder states that the externally requests the position of the General Director for Digital Marketing and the General Officer for Technology, Data and Analytics, is stated in the announcement of Tuesday. Changes include and consolidating responsibilities and creating some new positions.
“We believe that [Estée Lauder] It has countless challenges to be addressed in the near future, including the factors that are out of control, as a weakness of consumer demand in Asia, “TD Cowen analysts said, led by Oliver Chen, in Note from Tuesday. As a result, TD Cowen analysts expect that the company will face continuous sales pressure in the second half of the year.
To facilitate the reversal, Estée Lauder plans to increase investment focused on consumers, such as advertising; simplify and speed up processes; Outsource some services; and make innovations faster.
The company also plans to implement a more competitive approach to procurement and improve demand predicting. Estée Lauder wants to access zero waste minimizing excess stock and destruction of the product.
(Vijesti.ba)
