Estée Lauder announced significant changes as it looks to recover financially from the coronavirus pandemic.
On Thursday, the company announced they were closing between 10-15% of its freestanding stores and lay off 1,500-2,000 employees, about 3% of the workforce.
A list of the stores closing has not been announced.
The cosmetic giant said the pandemic had affected the bottom line; therefore, they were announcing a 2-year plan called the Post-COVID Business Acceleration Program to adjust its investments.
The plan will go into effect in the first quarter of next year.
"Our strategic priorities for fiscal 2021 rightly balance investment in these engines with cost discipline amid the ongoing pandemic," Fabrizio Freda, President, and Chief Executive Officer said in the press release. "Through the Post-COVID Business Acceleration Program announced today, we are better aligning our brick-and-mortar footprint to improve productivity and invest for growth. We are well-positioned to drive growth as the market dynamics support it, yet remain equally mindful of the effects of COVID-19 on consumers, the retail sector and economics, in general, as well as geopolitical uncertainty."
The company added they would focus on digital capabilities, advertising, and promotions.
The company said the plan is expected to save the company, before taxes, about $300 million to $400 million.