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[update] Estée Lauder's Previously Announced Initiative to Reduce Net Workforce Detailed in 8-K Filing

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NOTE: This piece has been updated to reflect that this initiative, while detailed in the latest 8-K filing, was first announced in 2016.

Under Estée Lauder’s “Leading Beauty Forward” initiative, first announced in 2016, the company will make a net reduction in its workforce. The details of that initiative are provided in a recent 8-K filing with the SEC. (Find all of the company's SEC filings here.)

The latest filing states, "Between January 1, 2018 and March 20, 2018, the Company approved certain initiatives under Leading Beauty Forward to optimize both select corporate functions and corporate and region market support structures. These actions will result in a net reduction of the workforce, which includes position eliminations, the re-leveling of certain positions and an investment in new capabilities."

Related: Estee Lauder Reports Double Digit Growth for Q2 2018

Consultants and other professional services and temporary labor backfill will be brought on for the integration and implementation of new processes and technologies, as well as training and recruitment related to new capabilities. The company approved consulting fees and implementation costs for some supply chain initiatives.

In May of 2016, the company filed a Current Report on Form 8-K with the United States Securities and Exchange Commission for “Leading Beauty Forward.” The multi-year initiative is expected to total between $600-$700 million through fiscal year 2021

Estée Lauder anticipates recording restructuring and other charges of nearly $93 million before taxes in connection with the initiatives, which will ultimately result in future cash expenditures.