MAC cosmetics owner Estee Lauder to cut 3,000 more jobs

Estee Lauder Cos. plans to cut as many as 3,000 more jobs and generate a further $200 million of savings to help boost its turnaround plan.

The owner of the La Mer and the Ordinary brands said Friday as many as 10,000 roles will now go, up from its previous target of 7,000 announced a year ago. Estee Lauder has a global workforce of about 57,000, according to its website.

Estee Lauder's shares rose as much as 13%. The stock had fallen 27% this year, compared with a gain of about 5% for the S&P 500 Index.


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The results confirm that "the worst is in the rear view mirror as restructuring activities are bearing fruit, and the business is steadily moving in the right direction," RBC Capital Markets analyst Nik Modi wrote in a research report.

Some of the job cuts reflect Estee Lauder's push to reduce staff at US department stores, as Chief Executive Officer Stephane de La Faverie aims to shift more sales online to faster-growth channels such as Amazon.com and TikTok Shop.