THE WHAT? Estée Lauder’s restructuring charges have reached US$1.14 billion as the company reduces headcount and consolidates operations.
THE DETAILS In a new SEC filing, the group confirmed an additional US$285 million in charges since late October tied to streamlining efforts, including service-provider consolidation and standardised business processes. The multiyear programme follows earlier plans to cut up to 7,000 jobs; more than 2,600 roles had been eliminated by May. The company recently returned to profitability in its fiscal first quarter, with leadership attributing gains partly to these restructuring measures.
THE WHY? The rising cost of restructuring reflects the pressure on global beauty groups to overhaul operations and rebuild competitiveness, particularly in challenged Asian markets.
Source: Wall Street Journal
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