Estée Lauder's Job Cut Plan Boosts Shares by 20%

Estee Lauder plans to cut 3% to 5% of its global workforce as it faces delayed recovery in China, leading to a surge in shares. The company beat second-quarter profit estimates but is still below its January 2022 record high. The cosmetics giant is focusing on cost-cutting efforts due to pressure on spending in China, with organic net sales in the Asia-Pacific region falling 7% and margins dipping 60 basis points. Estee expects incremental operating profit between $1.1 billion and $1.4 billion from the restructuring and has lowered its annual profit forecast for the second time.