Feb 5 (Reuters) - MAC lipstick maker Estee Lauder slashed its annual profit forecast on Monday and announced a restructuring program aimed at cutting about 3% to 5% of its workforce to rein in costs.
Shares of the New York-based company were up 14% in premarket trade.
The firm said it would start the program in the third quarter of fiscal 2024 and expects to take on restructuring and other charges of between $500 million and $700 million, before taxes.
As of June 2023, Estee had about 62,000 employees worldwide. The company had around 71% full-time, 16% temporary and 13% part-time employees.
Last quarter, in an attempt to lower its expenditure and rebuild margins, Estee had outlined a plan for fiscal years 2025 and 2026. The company now expects to drive incremental operating profit through the initiatives in the profit recovery plan of $1.1 billion to $1.4 billion.
It expects full-year 2024 adjusted profit per share between $2.08 and $2.23, compared with the prior forecast of $2.17 and $2.42.
The company's net sales fell 7%, to $4.28 billion in the second quarter, compared to analysts' estimate of $4.19 billion, according to LSEG data.
