Estée Lauder is set to double its planned job losses to as many as 7,000 roles, citing rising costs and ongoing uncertainty around President Donald Trump’s import tax crackdown.
The US cosmetics giant, which owns brands such as Clinique, MAC, and Jo Malone, had originally planned a smaller restructuring but now says cutbacks could affect up to 11% of its 62,000-strong workforce.
Chief executive Stéphane de La Faverie said the move aims to save around $1 billion (£805 million) as the group braces for the “risk of recession,” additional tariffs and global trade tensions. While Canada and Mexico have been granted a temporary reprieve from new US levies, shipments of goods from China face increased duties. That has already prompted retaliatory measures from Beijing, adding to the uncertainty for global retailers.
Estée Lauder sources ingredients across the globe, including Australia and Madagascar, and sells in over 150 countries. Under Trump’s heightened tariffs, cosmetics could be taxed further at each border crossing, impacting supply chains and profit margins.
For the three months to 31 December, Estée Lauder reported a $650 million (£518 million) pre-tax loss, compared with a $519 million profit a year earlier, citing weaker sales in China, Korea, and duty-free airport locations. Revenues declined by 6% to $4 billion (£3.2 billion).
The company has not specified where the job cuts will fall, but it employs around 4,400 staff in the UK and Ireland. Some employees may be redeployed to new roles as part of the restructuring. The scale of the changes echoes warnings from other multinational businesses, including Diageo, which have signalled a potential hit from the evolving tariff stand-off.
Many industries, ranging from automotive to agriculture, are watching the trade dispute closely. China added American fashion house PVH—owner of Calvin Klein and Tommy Hilfiger—to its “unreliable entity” list, fuelling concerns that US brands could face fresh sanctions and reduced business opportunities in the world’s second-largest economy.
