Estée Lauder is scheduled to double the losses of its planned jobs to 7,000 of the roles, citing the increasing costs and the constant uncertainty about the campaign of import tax, President Donald Trump.
The American cosmetics giant, which has trademarks such as Clinique, Mac and Jo Malone, originally planned to restructure a smaller, but now it says that discounts may affect up to 11 % of its 62000 working power.
Stéphane de la faverie said this step aims to save about one billion dollars (805 million pounds) as collective arches for the “danger of recession”, additional definitions and global trade tensions. While Canada and Mexico were given a temporary postponement of the new American drawings, goods shipments from China are facing increasing duties. This has already prompted reprisals from Beijing, adding to the uncertainty of global retailers.
Estée Lauder is the sources of ingredients all over the world, including Australia and Madagascar, and sells in more than 150 countries. Under the increasing definitions of Trump, taxes on cosmetics can be imposed at each crossing on the border, affecting supply chains and profit margins.
During the three months until December 31, Estée Lauder informed the pre -tax loss of $ 650 million (518 million pounds), compared to profits of $ 519 million in the previous year, noting weakening sales in China, Korea and the locations of the customs exemptions. Revenue decreased by 6 % to $ 4 billion (3.2 billion pounds).
The company did not specify where the job cuts will decrease, but it employs about 4,400 employees in the United Kingdom and Ireland. Some employees may be republished to new roles as part of the restructuring. The volume of changes is repeated by warnings from other multinationals, including Diaageo, which indicated a possible blow from facing the advanced tariff.
Many industries, which range from cars to agriculture, are closely seen. China has added the American fashion house PVH-the owner of Calvin Klein and Tommy Hilviger-to the list of “unreliable entity”, providing fears that American brands may face new sanctions and reduce job opportunities in the second largest economy in the world.