Estee Lauder warns of the possibility to eliminate 5800 to 7000 roles as part of a restructuring program to restore profitability.

Key Takeaways Estée Lauder reported a surprise loss and warned about current-quarter results as sales declined.The cosmetics company was especially impacted by slowing demand in China and the rest of the Asia-Pacific region.

As the company’s sales fell 6 percent in the second quarter, the owner of namesake Estée Lauder, Jo Malone, Tom Ford, Clinique and more, announced plans to ramp up its restructuring program, from 3,000 to between 5,800 to 7,000.

A restructuring plan is underway to kick-start sales after the conglomerate reported a 6 per cent sales dip in Q2.

Estee Lauder on Tuesday expanded a restructuring plan that would now involve up to 7,000 job cuts as the cosmetics giant grapples with persistent demand weakness especially in Asia, sending its shares down 19%.

Estee Lauder said it’s expanding its restructuring plan to include job cuts anywhere from 5,800 to 7,000 by fiscal 2026 as the global beauty company tries to boost sales and profits

Estee Lauder employs around 62,000 people worldwide, and said the final figure of jobs losses would be between 5,800 and 7,000, with some staff redeployed in new roles. The company did not say where the jobs would be lost.