Estee Lauder's Two Makeup Brands to Layoff
- Chaileedo Press
- Jul 7, 2023
- 2 min read
It is reported that Too Faced will lay off 22 employees and Smashbox will lay off 37 employees.
Recently, Estee Lauder's two makeup brands, Too Faced Cosmetics and Smashbox Beauty Cosmetics, submitted applications to Worker Adjustment and Retraining Notification (WARN) to implement layoffs on August 15.
WARN reportedly requires employers to provide 60 days advance notice to affected employees and state and local representatives prior to plant closures or mass layoffs, thereby protecting employees, their families and communities.
Too Faced will lay off 22 employees at its Irvine, California, office and Smashbox will lay off 37 employees at its Culver City, California, according to documents on the WARN website. Too Faced Cosmetics and Smashbox Beauty Cosmetics were reportedly acquired by Estee Lauder in 2016 and 2010, respectively.
(Credit: WARN official website document)
In Estée Lauder's latest quarterly financial results in May, the company revealed that Too Faced's "lower-than-expected results in key geographic regions and channels coupled with delays in future international expansion to areas that continue to be impacted by COVID-19." However, the growth in Too Faced's net sales partially offset the decline in net sales in the makeup segment. As of March 31, Too Faced had an impairment charge of $86 million and Smashbox had an impairment charge of $21 million.
In its financial results in 2020, Estée Lauder implemented its Post-COVID Business Acceleration Program, which was created to realign its business in response to shifts in the distribution landscape and consumer behavior in the wake of the COVID-19 pandemic. The program was reportedly launched in the first quarter of fiscal 2021, with specific initiatives approved in late fiscal 2022 and completed in fiscal 2023.
Estée Lauder estimates a net reduction of approximately 1,500 to 2,000 positions, primarily in point-of-sale employees and related support staff in the most disrupted regions, which represent approximately 3 percent of its current workforce. As of March 31, 2023, the company expects the Post-COVID Business Acceleration Program to result in related restructuring and other charges totaling between $450 million and $480 million (pre-tax), according to the latest financial results.
Comments