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Estée Lauder Shares Surge on Plans to Lay Off Up to 5% of Workforce

By Natasha Khan

 

Estee Lauder shares jumped nearly 15% to $153.90 in pre-market trading Monday after the cosmetic giant said it would lay off up to 5% of its workers, moving to boost profits after several weak quarters.

The company, which has roughly 62,000 workers, will be eliminating up to 3,100 positions. It said Monday that it expects to take restructuring and other charges of between $500 million and $700 million. It said it would be retraining and redeploying some of its staff.

On Monday, the maker of MAC and Aveda reported profits fell about 21% as net sales declined 7% to $4.28 billion for the period ended Dec. 31. The company has been struggling with weak demand in Asia, especially for its high-end brands in China.

 

Write to Natasha Khan at Natasha.Khan@WSJ.com

 
 

(END) Dow Jones Newswires

February 05, 2024 08:00 ET (13:00 GMT)

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