Estée Lauder Companies, the beauty giant behind brands such as Aveda, Clinique and Smashbox, has outlined plans to cut jobs and reduce store numbers.
The company behind Estée Lauder revealed the proposals as it posted figures that laid bare how the virus crisis had dented sales.
It has announced a two-year initiative to “rebalance investments to address the dramatic shifts in the distribution landscape and consumer behaviour post Covid-19”.
The plan will include increasing digital investments. But the group also estimates the closure of between 10-15% of its freestanding stores globally, as well as certain department store counters.
Estée Lauder Companies expects to cut about 1,500 to 2,000 jobs, or about 3% of its workforce globally.
Net sales in the year to June decreased 4% of $14.3 billion (£10.9 billion). For the fourth quarter it reported net sales of $2.43 billion, down 32% from a year earlier.
The firm was impacted by store closures for the Covid-19 lockdown and travel restrictions.
It added: “Covid-19 and its wide-ranging impacts have also influenced consumer preferences and practices due to the closures of offices, retail stores and other businesses and the significant decline in social gatherings.”
Demand for skin care and hair care products has been more resilient than the demand for makeup and fragrance, the firm added.
