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BBC Business Reporter
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The beauty firm Estee Lauder, owner of Cosmetics Brand Clinique, Mac, and Jo Malone, lost twice the number of jobs only expected, highlighting the uncertainty around the prices of US President Trump as concern.
The American multinational already restricted the company to combat its signaling performance, but now says that job losses could reach 7,000.
The prospects for companies that negotiate the world have become more difficult in recent days, while US President Donald Trump has launched his promised import tax program.
However, the prices targeting Canada and Mexico were suspended at the last minute.
The company, which also owns Bobbi Brown, Aveda and Tom Ford, said that it had to save around $ 1 billion (805 million pounds sterling) because it managed “the risk of recession … including taxation prices and sanctions “.
“We are considerably transforming our operating model to be leaner, faster and more agile,” said CEO Stéphane de la Faurie.
The company said the increase in inflation has increased costs.
Estee Lauder employs around 62,000 people worldwide and has said that the final figure of job losses would be between 5,800 and 7,000, some staff members are redeployed in new roles.
The company did not say where the jobs would be lost. It employs around 4,400 employees in the United Kingdom and Ireland.
The cost reduction measurement was revealed because it also declared in its results that it had loss of $ 590 million (474 million pounds sterling) in the three months and December, people spent less in China and Korea.
Estee Lauder is the last company to warn of the impact that a tariff war in tit-form-tat could have on their fortune.
The drinks giant, a diageo, which makes Guinness, Johnnie Walker, Baileys and Smirnoff warned Tuesday that the prices on Mexico and Canada – if they go – “could very well” have an impact on his business.
The Director General of Diageo, Debra Crew, said that the company took “a number of actions to mitigate the impact and disruption of our activities that prices can cause”.
Other industries from car manufacturers to lawyer producers should be considerably affected.
Some other consumption brands are more directly affected by prices.
China has added PVH, the American company which has brands of creators Calvin Klein and Tommy Hilfiger, to its “unreliable entity” list, saying that they had taken “discriminatory measures against Chinese companies”.
It will make it more difficult for these brands to do business in China. They can face sanctions, including fines, and the fact that the work visas of their foreign employees have been revoked.
