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Massive Job Cuts At Estée Lauder, Up To 11% Or 7,000 Employees, After Quarterly Sales Decline 6%

1. Estée Lauder to lay off 5,800-7,000 employees, impacting 9%-11% of workforce. 2. Second quarter revenues fell 6%, with skincare down 12%, indicating poor performance. 3. New CEO de la Faverie focuses on consumer engagement and organizational simplification. 4. Projected organic sales decrease of 8%-10% for the next quarter due to challenges. 5. Company aims for sustainable growth and aims for double-digit operating margins.

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FAQ

Why Bearish?

Substantial job losses and declining revenues indicate ongoing structural issues, similar to past downturns in retail stocks during management transitions.

How important is it?

The article highlights significant layoffs and leadership changes affecting long-term strategy, crucial for investors.

Why Long Term?

Rebuilding efforts and strategy implementation under new management may take years to materialize.

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