Global cosmetics giant to lay off 10,000 employees

Estée Lauder, which employs approximately 57,000 people worldwide, has announced that it has increased its planned layoffs from 7,000 to 10,000. With this move, the company aims to achieve annual cost savings of 1.2 billion dollars.

This strategic shift by Estée Lauder is being implemented primarily to reduce operational costs and increase competitiveness in the market. At the heart of the restructuring effort is the goal of transitioning from a physical store-heavy sales model to digital platforms and managing the company's sales channels more efficiently.

Under the leadership of new CEO Stéphane de La Faverie, the company's management is reshaping both its business operations and its global strategy. During the de La Faverie era, digitalization and innovative sales methods are expected to be prioritized.

Following the new layoff decisions, an increase was observed in Estée Lauder's stock prices. While investor expectations shifted positively after the announcements, the company raised its year-end earnings per share forecast to the 2.35–2.45 dollar range.

The company's strong sales in the perfume category and the 6 percent growth recorded, particularly in the Chinese market, have contributed to Estée Lauder's transformation plans. It is emphasized that the significant growth momentum in Asia has positively reflected on the overall financial results.

On the other hand, consolidation movements in the beauty sector continue to affect Estée Lauder as well. Although there has been talk of a potential merger with the Spanish company Puig Brands recently, the management's priority is considered to be the successful execution of the current transformation program. Analysts continue to closely monitor potential mergers and market dynamics.

In addition to the layoffs, Estée Lauder's goal of reaching new markets more quickly through digital channels stands out as the primary factor that will determine the firm's position in the sector in the coming period.