STORY: Shares of Estee Lauder rose as much as 12% on Friday after the company raised its annual profit forecast and said it would cut up to 3,000 more jobs as it accelerates a broad restructuring.
The cosmetics firm, which also owns Clinique and M.A.C, is in talks to merge with Spanish fashion and fragrance company Puig, whose brands include Jean-Paul Gaultier and Carolina Herrera.
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As a result, Estee Lauder now expects total job cuts could reach as many as 10,000, up from a prior estimate of 7,000 jobs, as it aims to save as much as $1.2 billion in annual costs.
The new target for job cuts would amount to about 17.5% of its global workforce, according to Estée Lauder's latest annual filing.
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The company said more than 70% of the additional job cuts will come from department store roles, as the company shifts its focus towards faster-growing digital and specialty retail channels such as Ulta, Sephora, Amazon and TikTok Shop.
