(qlmbusinessnews.com . Wed 5th Feb, 2025) London, UK —
Estée Lauder Expands Job Cuts Amid Tariff Uncertainty.
Estée Lauder, the cosmetics giant behind well-known brands such as Clinique, MAC, and Jo Malone, has announced plans to double its job cuts as it braces for the economic impact of tariffs imposed by the United States.
Initially restructuring to combat declining performance, the company now anticipates shedding up to 7,000 jobs worldwide, significantly more than the original figure. Rising inflation and the threat of a recession are also contributing to its decision.
Chief Executive Stéphane de La Faverie said the firm was undergoing a major transformation to become “leaner, faster, and more agile.” The beauty conglomerate aims to save around $1bn (£805m) as part of its strategic overhaul.
Rising Costs and Tariff Concerns
Increased operational expenses and the prospect of a tariff war between the US and its trade partners have prompted a wave of uncertainty for multinational businesses like Estée Lauder.
Recent import taxes announced by President Donald Trump were suspended for Canada and Mexico at the last minute. Still, global brands remain wary of future developments.
Estée Lauder, which also owns Bobbi Brown, Aveda, and Tom Ford, reported a loss of $590m (£474m) in the last three months of 2024 due to weakened consumer spending in key Asian markets, including China and Korea.
Impact on Employment
With a global workforce of around 62,000 employees, the cosmetics firm confirmed job losses would range between 5,800 and 7,000. Some staff will be reassigned to new roles, though it remains unclear where the majority of the redundancies will occur. Estée Lauder employs approximately 4,400 people across the UK and Ireland.
Industry-Wide Challenges
Estée Lauder is not alone in its concerns. Drinks manufacturer Diageo, famous for producing Guinness, Johnnie Walker, and Smirnoff, also voiced fears over potential tariffs on Canadian and Mexican imports. CEO Debra Crew stated that the company had implemented contingency plans to minimise disruptions.
Other industries, including automotive manufacturers and agricultural producers, are bracing for economic turbulence.
In China, the situation is particularly challenging for some American brands. Calvin Klein and Tommy Hilfiger owner PVH was added to China's “unreliable entity” list, potentially subjecting the company to sanctions, fines, and restrictions on work visas for foreign staff.
As global markets navigate this volatile landscape, businesses face growing pressure to adapt to new trade dynamics and economic headwinds.
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