(Yicai) Feb. 7 -- Estée Lauder is not planning to make any major changes to its business operations in China, the world’s second largest cosmetics market, after the US make-up giant said it is trimming its global headcount to stem sliding profits and revenue, China News reported yesterday, citing a company insider.

Estée Lauder is preparing to let go between 3 percent and 5 percent of its workforce in an attempt to reboot itself after a dismal final quarter last year, the New York-based firm said yesterday. The move will affect between 1,800 and 3,000 of its 62,000 employees worldwide. Layoffs will start in the third fiscal quarter this year and should be completed by the end of the 2026 fiscal year.

The restructuring will help empower the team in China and allow the company to adapt better to trends in the Chinese market, the report said.

Estée Lauder’s net profit plunged 20.5 percent in the second fiscal quarter ended Dec. 31 from the year before to USD313 million while revenue tumbled 7 percent to USD4.2 billion, according to the company’s latest earnings results.

China’s cosmetics sales are expected to climb 5.1 percent in 2023 from the year before to CNY414.2 billion (USD57.6 billion), according to the National Bureau of Statistics.

Editor: Kim Taylor