Global Beauty Giant Adapts to Post-Covid Landscape

  • Estée Lauder to cut between 1,500 and 2,000 jobs globally
  • Restructuring initiative called ‘Post-Covid Business Acceleration Program’
  • Affects point of sale employees and support staff in disrupted areas
  • Closure of 10% to 15% of freestanding stores and less productive department store counters
  • Two-year program to address post-Covid shifts in distribution landscape and consumer behavior
  • Expected annual benefits between $300m and $400m after implementation
  • Net sales for full year ended June 30, 2020 at $14.3bn, down 4% from previous year
  • Online sales accelerated during pandemic
  • CEO Fabrizio Freda focuses on employee and consumer safety, racial equity commitments, and cost discipline

Estée Lauder, the global beauty giant that owns M.A.C and Too Faced makeup brands, has announced plans to cut between 1,500 and 2,000 jobs as part of a restructuring initiative called the ‘Post-Covid Business Acceleration Program’. The program aims to address shifts in consumer behavior and distribution landscape following the coronavirus crisis. Point of sale employees and support staff in disrupted areas will be primarily affected, along with closures of 10% to 15% of freestanding stores and less productive department store counters. The two-year program seeks to rebalance investments for sustainable growth amid pandemic challenges. CEO Fabrizio Freda emphasizes employee safety, consumer well-being, and cost discipline.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Estée Lauder’s restructuring plans due to the impact of COVID-19 on its business operations, including job cuts, store closures, and a shift towards online sales. It also includes quotes from the CEO that support the company’s strategy.
Noise Level: 6
Noise Justification: The article provides relevant information about Estée Lauder’s restructuring efforts due to the impact of COVID-19 on its business, including job cuts and store closures. However, it could benefit from more in-depth analysis of the long-term trends or consequences of these decisions on employees and consumers.
Financial Relevance: Yes
Financial Markets Impacted: Estée Lauder Companies Inc.
Financial Rating Justification: The article discusses Estée Lauder’s restructuring plan, including job cuts and store closures, which will impact the company’s financial performance and may affect its stock price. It also mentions the company’s net sales for the previous fiscal year.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk