NEW YORK — Estee Lauder is planning to cut up to 7,000 jobs by fiscal 2026, which represents more than 11% of its workforce. This decision comes in light of the company’s recent financial struggles, having reported a 6% decline in sales and losses in the latest quarter.

The New York-based firm, which owns popular brands such as MAC, La Mer, and Aveda, has downgraded its profit projections due to the slowing economies in China and Korea, coupled with ongoing global geopolitical tensions.

In a related development, China announced retaliatory tariffs on certain American imports and initiated an antitrust investigation into Google shortly after the imposition of new tariffs on Chinese goods by the U.S. government.

Estee Lauder anticipates incurring restructuring and other costs associated with the layoffs, estimating these charges to be between $1.2 billion and $1.6 billion, excluding taxes.

As of June 30, 2024, Estee Lauder employed approximately 62,000 people worldwide, according to its latest annual report.

“We are significantly transforming our operating model to be leaner, faster, and more agile,” stated CEO Stéphane de La Faverie, who recently took over as the company’s head.

The company’s sales were reported at $4 billion for the latest quarter, a decrease from $4.28 billion during the same timeframe last year.

For the upcoming quarter, Estee Lauder expects earnings of only 24 to 34 cents per share, a substantial drop from the 61 cents projected by analysts, based on FactSet’s data.

In response to these developments, shares of The Estée Lauder Companies Inc. saw a nearly 15% decline, dropping $12.14 on Tuesday.