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Estée Lauder’s Workforce Cuts Explained | Fast Five Shorts · Omni Talk Retail

• 0:00
  Estee
• 0:00
  Lauder
• 0:00
  has
• 0:01
  expanded
• 0:01
  its
• 0:01
  restructuring
• 0:02
  program
• 0:03
  for
• 0:03
  the
• 0:03
  second
• 0:04
  time
• 0:04
  in
• 0:04
  the
• 0:04
  last
• 0:05
  year,
• 0:05
  now
• 0:05
  targeting
• 0:06
  a
• 0:06
  net
• 0:06
  reduction
• 0:07
  of
• 0:07
  between
• 0:08
  9,000
• 0:08
  and
• 0:09
  10,000
• 0:09
  positions
• 0:10
  globally,
• 0:11
  which
• 0:11
  is
• 0:11
  up
• 0:12
  from
• 0:12
  its
• 0:12
  previous
• 0:12
  estimate
• 0:13
  of
• 0:13
  between
• 0:14
  5,800
• 0:14
  and
• 0:15
  7,000
• 0:16
  as
• 0:16
  the
• 0:16
  cosmetics
• 0:17
  giant
• 0:17
  accelerates
• 0:18
  its
• 0:18
  beauty
• 0:19
  reimagined
• 0:20
  turnaround
• 0:20
  plan.
• 0:21
  So
• 0:21
  a
• 0:21
  lot
• 0:21
  of
• 0:21
  turnaround
• 0:22
  plans
• 0:22
  here,
• 0:22
  Chris.
• 0:24
  According
• 0:24
  to
• 0:25
  Retail
• 0:25
  Dive,
• 0:25
  again,
• 0:26
  more
• 0:26
  than
• 0:27
  70%
• 0:27
  of
• 0:27
  the
• 0:28
  increase
• 0:28
  in
• 0:28
  planned
• 0:29
  cuts
• 0:29
  is
• 0:29
  tied
• 0:29
  to
• 0:29
  a
• 0:30
  reduction
• 0:30
  in
• 0:30
  point
• 0:31
  of
• 0:31
  sale
• 0:31
  positions
• 0:32
  at
• 0:32
  what
• 0:32
  the
• 0:32
  company
• 0:33
  calls
• 0:33
  select
• 0:34
  unproductive
• 0:35
  doors
• 0:36
  in
• 0:36
  the
• 0:36
  department
• 0:37
  store
• 0:37
  and
• 0:37
  freestanding
• 0:38
  store
• 0:38
  channels
• 0:39
  at
• 0:40
  the
• 0:40
  upper
• 0:40
  end.
• 0:40
  The
• 0:41
  new
• 0:41
  Target
• 0:41
  represents
• 0:42
  roughly
• 0:43
  17.5%
• 0:44
  of
• 0:44
  the
• 0:44
  company's
• 0:45
  total
• 0:45
  employee
• 0:46
  base,
• 0:46
  which
• 0:46
  is
• 0:46
  a
• 0:47
  lot
• 0:48
  of
• 0:48
  approximately
• 0:49
  57,000
• 0:50
  worldwide
• 0:51
  as
• 0:51
  of
• 0:52
  June
• 0:52
  30,
• 0:53
  2025.
• 0:54
  It
• 0:54
  should
• 0:54
  also
• 0:54
  be
• 0:55
  noted
• 0:56
  that
• 0:56
  along
• 0:56
  with
• 0:56
  the
• 0:57
  expanded
• 0:57
  job
• 0:57
  cuts,
• 0:58
  Estee
• 0:58
  Lauder
• 0:59
  raised
• 0:59
  its
• 0:59
  annual
• 1:00
  profit
• 1:00
  forecast
• 1:01
  and
• 1:01
  now
• 1:01
  expects
• 1:02
  gross
• 1:02
  annual
• 1:03
  benefits
• 1:03
  from
• 1:03
  the
• 1:04
  restructuring
• 1:04
  of
• 1:04
  between
• 1:05
  1
• 1:05
  billion
• 1:05
  and
• 1:06
  1.2
• 1:07
  billion
• 1:07
  before
• 1:07
  taxes,
• 1:08
  which
• 1:09
  is
• 1:09
  up
• 1:09
  from
• 1:10
  a
• 1:10
  prior
• 1:10
  estimate
• 1:11
  of
• 1:11
  800
• 1:11
  million
• 1:12
  to
• 1:13
  1
• 1:13
  billion.
• 1:14
  And
• 1:14
  that
• 1:15
  its
• 1:15
  shares
• 1:15
  jumped
• 1:16
  approximately
• 1:16
  11%
• 1:17
  in
• 1:17
  pre
• 1:18
  market
• 1:18
  trading
• 1:18
  following
• 1:19
  the
• 1:19
  announcement.
• 1:20
  To
• 1:20
  add
• 1:21
  even
• 1:21
  further
• 1:22
  intrigue,
• 1:22
  Chris.
• 1:23
  Oh,
• 1:24
  intrigue,
• 1:25
  yes.
• 1:26
  Who?
• 1:26
  There's
• 1:26
  a
• 1:27
  lot
• 1:27
  here.
• 1:27
  Estee
• 1:28
  Lauder
• 1:28
  is
• 1:29
  also
• 1:29
  currently
• 1:30
  in
• 1:30
  talks
• 1:31
  to
• 1:31
  merge
• 1:31
  with
• 1:31
  Pooch
• 1:32
  Spelled
• 1:33
  Puig,
• 1:35
  the
• 1:35
  owner
• 1:35
  of
• 1:36
  Jean
• 1:36
  Paul
• 1:36
  Gaultier,
• 1:38
  which
• 1:38
  would
• 1:38
  create
• 1:39
  a
• 1:39
  $40
• 1:39
  billion
• 1:40
  luxury
• 1:41
  beauty
• 1:41
  group.
• 1:42
  All
• 1:43
  right,
• 1:43
  Chris,
• 1:43
  I'm
• 1:44
  curious.
• 1:44
  That
• 1:44
  was
• 1:44
  a
• 1:45
  lot
• 1:45
  of
• 1:45
  information
• 1:45
  here.
• 1:46
  Does
• 1:46
  Estee
• 1:47
  Lauder's
• 1:47
  drastic
• 1:47
  employee
• 1:48
  reduction
• 1:48
  say
• 1:49
  more
• 1:49
  about
• 1:49
  Estee
• 1:50
  Lauder
• 1:50
  itself
• 1:51
  or
• 1:51
  do
• 1:51
  you
• 1:51
  think
• 1:51
  this
• 1:52
  is
• 1:52
  more
• 1:52
  about
• 1:52
  the
• 1:52
  stuff
• 1:53
  state
• 1:53
  of
• 1:53
  department
• 1:53
  stores
• 1:54
  in
• 1:54
  general?
• 1:55
  Oh,
• 1:55
  man,
• 1:57
  that's
• 1:57
  a
• 1:57
  really
• 1:57
  tough
• 1:58
  question.
• 1:58
  You
• 1:59
  know,
• 1:59
  as
• 2:00
  much
• 2:00
  as
• 2:00
  I've
• 2:00
  been
• 2:00
  short
• 2:01
  on
• 2:01
  department
• 2:01
  stores
• 2:01
  in
• 2:02
  the
• 2:02
  history,
• 2:02
  the
• 2:02
  eight
• 2:02
  year
• 2:02
  history
• 2:02
  of
• 2:03
  Omnitalk,
• 2:03
  Jen,
• 2:03
  I,
• 2:04
  I
• 2:04
  actually
• 2:04
  think
• 2:05
  this
• 2:05
  says
• 2:05
  a
• 2:05
  lot
• 2:05
  more
• 2:05
  about
• 2:06
  Estee
• 2:06
  Lauder.
• 2:06
  One
• 2:06
  could
• 2:07
  spin
• 2:07
  it
• 2:07
  as
• 2:07
  a
• 2:08
  marker
• 2:08
  demerit
• 2:09
  against
• 2:09
  the
• 2:09
  department
• 2:10
  store
• 2:10
  industry,
• 2:11
  but
• 2:11
  I
• 2:11
  don't
• 2:12
  think,
• 2:12
  I
• 2:12
  don't
• 2:12
  think
• 2:12
  that's,
• 2:13
  that's
• 2:13
  what
• 2:13
  I'd
• 2:14
  start
• 2:14
  to
• 2:14
  do.
• 2:14
  Because
• 2:15
  the
• 2:15
  pattern
• 2:15
  that
• 2:16
  I've
• 2:16
  recognized
• 2:16
  doing
• 2:17
  this
• 2:17
  podcast
• 2:17
  for
• 2:18
  as
• 2:18
  long
• 2:18
  as
• 2:18
  I've
• 2:18
  done
• 2:18
  it
• 2:19
  is
• 2:19
  that
• 2:20
  a
• 2:20
  bold
• 2:20
  move
• 2:20
  like
• 2:21
  this
• 2:21
  tends
• 2:21
  to
• 2:21
  happen
• 2:22
  in
• 2:22
  front
• 2:22
  of
• 2:22
  big
• 2:23
  time
• 2:23
  corporate
• 2:23
  restructurings.
• 2:24
  It's
• 2:25
  just
• 2:25
  par
• 2:25
  for
• 2:25
  the
• 2:26
  course.
• 2:26
  Companies
• 2:27
  want
• 2:27
  to
• 2:27
  make
• 2:27
  their
• 2:27
  books
• 2:28
  look
• 2:28
  as
• 2:28
  clean
• 2:28
  as
• 2:29
  possible
• 2:30
  and
• 2:30
  they
• 2:30
  can
• 2:30
  always
• 2:30
  add
• 2:31
  the
• 2:31
  jobs
• 2:31
  back
• 2:31
  in
• 2:32
  over
• 2:32
  time.
• 2:32
  So
• 2:32
  I
• 2:33
  think,
• 2:33
  you
• 2:33
  know,
• 2:33
  from
• 2:33
  a
• 2:33
  leadership
• 2:34
  perspective,
• 2:34
  and
• 2:34
  Jen,
• 2:34
  you
• 2:35
  probably
• 2:35
  know
• 2:35
  this
• 2:35
  too.
• 2:35
  Like,
• 2:36
  you
• 2:36
  know,
• 2:36
  they're
• 2:36
  probably
• 2:37
  like,
• 2:37
  if
• 2:37
  I
• 2:37
  cut
• 2:38
  too
• 2:38
  hard
• 2:38
  I
• 2:38
  can
• 2:38
  always
• 2:39
  bring
• 2:39
  them
• 2:39
  back
• 2:39
  or
• 2:39
  rehire
• 2:40
  again
• 2:40
  or
• 2:40
  try
• 2:41
  to.
• 2:41
  So
• 2:41
  I
• 2:42
  just
• 2:42
  chalked
• 2:42
  this
• 2:42
  up
• 2:42
  to
• 2:43
  quote,
• 2:43
  unquote,
• 2:43
  merger
• 2:44
  math.
• 2:44
  That's
• 2:45
  my
• 2:45
  new
• 2:45
  term
• 2:45
  of
• 2:45
  the
• 2:45
  day,
• 2:46
  merger
• 2:46
  math.
• 2:47
  But
• 2:47
  it
• 2:47
  is
• 2:48
  pretty
• 2:48
  darn
• 2:48
  sizable.
• 2:49
  You
• 2:49
  said
• 2:49
  it
• 2:50
  kind
• 2:50
  of
• 2:50
  as
• 2:50
  you
• 2:50
  were
• 2:50
  reading
• 2:50
  the
• 2:51
  headline.
• 2:51
  17,
• 2:52
  17
• 2:53
  and
• 2:53
  a
• 2:53
  half
• 2:53
  percent
• 2:54
  of
• 2:54
  your
• 2:54
  employee
• 2:55
  base.
• 2:55
  Oh,
• 2:56
  man.
• 2:56
  The
• 2:56
  one
• 2:56
  thing
• 2:57
  I
• 2:57
  would
• 2:57
  like
• 2:57
  to
• 2:57
  know
• 2:58
  is
• 2:58
  in
• 2:59
  what
• 2:59
  department
• 2:59
  stores
• 3:00
  is
• 3:00
  that
• 3:01
  reduction
• 3:01
  concentrated?
• 3:02
  Because
• 3:02
  I
• 3:02
  would
• 3:03
  probably
• 3:03
  short
• 3:03
  all
• 3:04
  of
• 3:04
  them
• 3:05
  immediately
• 3:05
  if
• 3:05
  I
• 3:06
  could.
• 3:06
  I'm
• 3:06
  not
• 3:06
  a
• 3:06
  financial
• 3:06
  advisor,
• 3:07
  so
• 3:07
  don't
• 3:07
  take
• 3:08
  my
• 3:08
  advice.
• 3:08
  But.
• 3:08
  But,
• 3:09
  you
• 3:09
  know,
• 3:09
  I
• 3:09
  probably
• 3:09
  would
• 3:10
  because
• 3:10
  that
• 3:10
  would
• 3:10
  be
• 3:10
  pretty
• 3:11
  damning
• 3:11
  if
• 3:12
  those
• 3:12
  are,
• 3:12
  you
• 3:12
  know,
• 3:13
  concentrated
• 3:14
  in
• 3:14
  certain
• 3:14
  chunks
• 3:15
  of
• 3:15
  the
• 3:15
  department
• 3:15
  store
• 3:15
  industry,
• 3:16
  not
• 3:16
  just
• 3:16
  in
• 3:16
  the
• 3:16
  US
• 3:17
  but
• 3:17
  globally
• 3:17
  too.
• 3:18
  Yeah,
• 3:18
  it's
• 3:18
  interesting.
• 3:19
  Those
• 3:19
  unproductive
• 3:20
  doors
• 3:21
  or
• 3:21
  whatever
• 3:21
  the
• 3:21
  headline
• 3:22
  reads,
• 3:22
  right?
• 3:22
  It's.
• 3:23
  It'll
• 3:23
  be
• 3:23
  interesting
• 3:24
  to
• 3:24
  see
• 3:24
  where
• 3:24
  those.
• 3:24
  Where
• 3:25
  those
• 3:25
  are.
• 3:27
  Initially,
• 3:27
  I
• 3:28
  read
• 3:28
  this
• 3:28
  as
• 3:28
  a
• 3:29
  sign
• 3:29
  of
• 3:29
  what's
• 3:29
  to
• 3:29
  come
• 3:29
  for
• 3:29
  department
• 3:30
  stores.
• 3:30
  So
• 3:30
  I
• 3:31
  was
• 3:31
  on
• 3:31
  the
• 3:31
  flip
• 3:31
  side.
• 3:32
  But
• 3:32
  once
• 3:33
  I
• 3:33
  started
• 3:33
  reading
• 3:34
  about
• 3:34
  sort
• 3:34
  of
• 3:34
  this
• 3:35
  potential
• 3:35
  merger
• 3:35
  and
• 3:36
  the
• 3:36
  way
• 3:36
  it
• 3:36
  impacts
• 3:37
  profit
• 3:37
  and
• 3:38
  the
• 3:38
  amount
• 3:38
  of
• 3:38
  financials
• 3:39
  that
• 3:39
  was
• 3:41
  highlighted
• 3:42
  in
• 3:42
  the
• 3:42
  headline,
• 3:42
  I.
• 3:43
  I
• 3:43
  could
• 3:43
  see
• 3:44
  where
• 3:44
  you're
• 3:44
  at
• 3:44
  with
• 3:44
  your
• 3:44
  merger
• 3:45
  math,
• 3:45
  for
• 3:45
  sure.
• 3:45
  I
• 3:45
  think
• 3:46
  it's
• 3:46
  probably
• 3:46
  a
• 3:47
  both.
• 3:47
  And
• 3:47
  if
• 3:48
  I
• 3:48
  have
• 3:48
  to
• 3:48
  guess,
• 3:50
  I
• 3:50
  mean,
• 3:50
  in
• 3:50
  my
• 3:50
  very
• 3:51
  limited
• 3:51
  time
• 3:52
  that
• 3:52
  I
• 3:52
  spend
• 3:52
  in
• 3:52
  department
• 3:53
  stores,
• 3:54
  being
• 3:54
  an
• 3:54
  ops
• 3:55
  girl,
• 3:55
  when
• 3:55
  I
• 3:55
  walk
• 3:56
  through,
• 3:56
  I'm
• 3:56
  always
• 3:56
  wondering,
• 3:57
  like,
• 3:57
  who
• 3:57
  is
• 3:58
  paying
• 3:58
  them
• 3:59
  to
• 3:59
  stand
• 3:59
  there?
• 3:59
  Because
• 4:00
  I've
• 4:00
  never
• 4:01
  seen
• 4:01
  it
• 4:01
  busy.
• 4:02
  Right.
• 4:02
  So
• 4:02
  you
• 4:02
  do
• 4:02
  have
• 4:02
  to
• 4:03
  wonder,
• 4:03
  like,
• 4:03
  man,
• 4:04
  their
• 4:04
  margins
• 4:04
  are
• 4:04
  high
• 4:05
  enough
• 4:05
  to
• 4:05
  just
• 4:05
  have
• 4:06
  that
• 4:06
  person
• 4:06
  stand
• 4:07
  there.
• 4:09
  So
• 4:10
  I
• 4:10
  wouldn't
• 4:10
  be
• 4:11
  surprised
• 4:11
  if
• 4:11
  it's
• 4:11
  a
• 4:11
  sign
• 4:12
  of
• 4:12
  what's
• 4:12
  to
• 4:12
  come
• 4:13
  for
• 4:13
  department
• 4:13
  stores
• 4:13
  and
• 4:14
  sort
• 4:14
  of
• 4:14
  the
• 4:14
  commercial
• 4:15
  strategy
• 4:15
  as
• 4:15
  a
• 4:15
  whole
• 4:16
  or
• 4:16
  the
• 4:16
  go
• 4:16
  to
• 4:16
  market
• 4:17
  strategy
• 4:17
  for
• 4:17
  Estee
• 4:17
  Lauder
• 4:18
  and
• 4:18
  how
• 4:18
  it
• 4:18
  could
• 4:18
  be
• 4:19
  different,
• 4:21
  but
• 4:21
  maybe
• 4:21
  both.
• 4:22
  Maybe
• 4:22
  it's
• 4:22
  merger
• 4:22
  math
• 4:23
  and
• 4:23
  a
• 4:23
  sign
• 4:24
  of
• 4:24
  what's
• 4:24
  to
• 4:24
  come
• 4:24
  for
• 4:25
  department
• 4:25
  stores.
• 4:26
  Yeah,
• 4:26
  I
• 4:26
  think
• 4:27
  that's.
• 4:27
  I
• 4:27
  think
• 4:27
  as
• 4:27
  I
• 4:28
  sit
• 4:28
  back,
• 4:28
  I
• 4:28
  think
• 4:28
  that's
• 4:28
  probably
• 4:29
  the
• 4:29
  right
• 4:29
  way
• 4:29
  to
• 4:29
  look
• 4:29
  at
• 4:29
  it.
• 4:29
  It's
• 4:30
  probably
• 4:30
  a
• 4:30
  little
• 4:30
  bit
• 4:30
  of
• 4:30
  both
• 4:30
  because,
• 4:31
  you
• 4:31
  know,
• 4:31
  Estee
• 4:31
  Lauder
• 4:32
  is
• 4:32
  also
• 4:32
  saying,
• 4:32
  like,
• 4:32
  there's
• 4:33
  better
• 4:33
  ways
• 4:33
  to
• 4:33
  invest
• 4:33
  our
• 4:34
  money
• 4:34
  to
• 4:34
  get
• 4:34
  a
• 4:34
  better
• 4:34
  return,
• 4:35
  you
• 4:35
  know,
• 4:35
  whether
• 4:35
  it's
• 4:35
  through
• 4:36
  social
• 4:36
  media,
• 4:36
  influencer
• 4:37
  tie
• 4:37
  ins,
• 4:38
  whatever.
• 4:39
  Then,
• 4:39
  you
• 4:39
  know,
• 4:39
  and
• 4:39
  there's
• 4:39
  probably
• 4:40
  a
• 4:40
  whole
• 4:40
  host
• 4:40
  of
• 4:40
  things
• 4:40
  they're
• 4:41
  looking
• 4:41
  at,
• 4:41
  but
• 4:41
  that
• 4:41
  there's
• 4:42
  more
• 4:42
  options
• 4:42
  out
• 4:42
  there
• 4:43
  than
• 4:43
  just
• 4:43
  putting
• 4:43
  somebody,
• 4:44
  you
• 4:44
  know,
• 4:44
  and
• 4:45
  in
• 4:45
  a
• 4:45
  department
• 4:46
  store
• 4:46
  and
• 4:46
  not
• 4:46
  having
• 4:47
  them,
• 4:47
  you
• 4:47
  know,
• 4:47
  interact
• 4:48
  with
• 4:48
  Customers.
• 4:48
  Because
• 4:49
  like
• 4:49
  you
• 4:49
  said,
• 4:49
  there's
• 4:50
  many
• 4:50
  hours
• 4:50
  in
• 4:50
  a
• 4:50
  department
• 4:51
  store
• 4:51
  where
• 4:51
  there's
• 4:51
  just
• 4:52
  no
• 4:52
  traffic
• 4:52
  into
• 4:53
  the
• 4:53
  beauty
• 4:53
  counters.
• 4:54
  At
• 4:54
  this
• 4:54
  point
• 4:54
  in
• 4:54
  time,
• 4:55
  the
• 4:55
  traffic.
• 4:56
  Is
• 4:56
  drastically
• 4:57
  different
• 4:57
  than
• 4:57
  it
• 4:58
  used
• 4:58
  to
• 4:58
  be.
• 4:58
  I
• 4:58
  guess
• 4:58
  this
• 4:59
  would
• 4:59
  almost
• 4:59
  go
• 4:59
  in
• 4:59
  a
• 5:00
  similar
• 5:00
  way
• 5:00
  to
• 5:00
  the
• 5:01
  last
• 5:01
  headline
• 5:01
  where
• 5:02
  I'm
• 5:02
  like,
• 5:02
  oh,
• 5:02
  I'm
• 5:02
  surprised
• 5:03
  they
• 5:03
  didn't
• 5:03
  already
• 5:05
  cut.
• 5:05
  Like,
• 5:05
  I,
• 5:05
  I
• 5:06
  didn't
• 5:06
  think
• 5:06
  about
• 5:06
  it.
• 5:06
  But
• 5:07
  from
• 5:07
  a
• 5:07
  financial
• 5:08
  standpoint,
• 5:08
  if
• 5:08
  you're
• 5:09
  looking
• 5:09
  at
• 5:09
  opportunities
• 5:10
  to
• 5:10
  improve
• 5:10
  margin
• 5:11
  or
• 5:11
  improve,
• 5:12
  Improve
• 5:12
  your
• 5:12
  P
• 5:13
  L,
• 5:13
  that
• 5:13
  has
• 5:13
  to
• 5:14
  be
• 5:15
  the
• 5:15
  most
• 5:15
  obvious.
• 5:16
  I,
• 5:16
  I
• 5:16
  would
• 5:17
  think,
• 5:17
  again,
• 5:18
  I
• 5:18
  haven't
• 5:18
  seen
• 5:18
  their
• 5:18
  numbers,
• 5:19
  so
• 5:19
  maybe
• 5:19
  there
• 5:19
  is
• 5:19
  a
• 5:19
  lot
• 5:20
  of
• 5:20
  revenue
• 5:20
  that
• 5:20
  points
• 5:20
  back
• 5:21
  to
• 5:21
  that
• 5:22
  point
• 5:22
  of
• 5:22
  sale
• 5:22
  interaction
• 5:23
  at
• 5:23
  that
• 5:24
  beauty
• 5:24
  counter.
• 5:24
  But
• 5:24
  it
• 5:25
  isn't
• 5:26
  the
• 5:26
  90s
• 5:27
  anymore,
• 5:27
  you
• 5:27
  know,
• 5:27
  like,
• 5:28
  there
• 5:28
  just
• 5:28
  isn't
• 5:28
  the
• 5:28
  traffic
• 5:29
  in
• 5:29
  those
• 5:29
  department
• 5:29
  stores
• 5:30
  to
• 5:30
  justify
• 5:30
  it,
• 5:30
  I
• 5:30
  would
• 5:31
  think.
• 5:32
  Yeah.
• 5:32
  So,
• 5:32
  Jen.
• 5:33
  Yeah,
• 5:33
  I've
• 5:33
  spoken
• 5:34
  like
• 5:34
  a
• 5:34
  true
• 5:34
  talent
• 5:35
  expert
• 5:35
  too,
• 5:35
  and
• 5:35
  a
• 5:35
  pragmatic
• 5:36
  one
• 5:36
  at
• 5:36
  that.
• 5:37
  I
• 5:37
  mean,
• 5:37
  if
• 5:38
  I
• 5:38
  read
• 5:38
  between
• 5:38
  the
• 5:38
  lines
• 5:39
  of
• 5:39
  what
• 5:39
  you're
• 5:39
  saying,
• 5:39
  it's
• 5:40
  also
• 5:40
  just
• 5:40
  good
• 5:40
  business
• 5:41
  practice
• 5:41
  to
• 5:42
  constantly
• 5:42
  be
• 5:43
  shaving
• 5:43
  your
• 5:44
  base
• 5:44
  where
• 5:45
  it's
• 5:45
  not
• 5:45
  needed
• 5:45
  anymore
• 5:46
  as
• 5:46
  well.
• 5:46
  Right?
• 5:48
  Yeah.
• 5:48
  And
• 5:49
  shaving
• 5:49
  your
• 5:49
  base.
• 5:50
  I
• 5:50
  mean,
• 5:50
  I'm
• 5:51
  not
• 5:51
  saying
• 5:51
  constantly
• 5:52
  cut
• 5:52
  back,
• 5:52
  but
• 5:52
  I
• 5:53
  do
• 5:53
  think
• 5:53
  constantly
• 5:54
  reevaluate.
• 5:55
  Reevaluating.
• 5:56
  Right.
• 5:56
  Like,
• 5:57
  where
• 5:57
  is
• 5:57
  your
• 5:57
  labor
• 5:58
  contributing
• 5:59
  to.
• 5:59
  And
• 6:00
  labor
• 6:00
  can
• 6:00
  be
• 6:00
  corporate
• 6:01
  salaries.
• 6:01
  Right.
• 6:02
  I'm
• 6:02
  not
• 6:02
  just
• 6:02
  talking
• 6:02
  about
• 6:02
  people
• 6:03
  in
• 6:03
  stores,
• 6:03
  but
• 6:04
  where's
• 6:04
  your
• 6:04
  labor
• 6:05
  contributing
• 6:05
  to
• 6:05
  your
• 6:05
  revenue?
• 6:06
  And
• 6:06
  if
• 6:06
  it
• 6:06
  isn't,
• 6:07
  we
• 6:07
  should
• 6:07
  reinvest
• 6:08
  that
• 6:08
  labor
• 6:08
  into
• 6:08
  where
• 6:09
  revenue
• 6:09
  is
• 6:09
  coming
• 6:09
  from
• 6:09
  tomorrow.
• 6:11
  And
• 6:11
  so
• 6:12
  whether
• 6:12
  it's
• 6:12
  shaving
• 6:13
  or
• 6:13
  not,
• 6:13
  I
• 6:13
  would
• 6:14
  certainly
• 6:14
  say
• 6:14
  restructuring.
• 6:15
  I
• 6:15
  think
• 6:15
  restructuring
• 6:16
  gets
• 6:16
  a
• 6:16
  bad
• 6:16
  word
• 6:16
  out
• 6:17
  or
• 6:17
  a
• 6:17
  bad
• 6:17
  rap
• 6:18
  out
• 6:18
  there
• 6:18
  because
• 6:18
  it
• 6:18
  feels
• 6:18
  like
• 6:19
  all
• 6:19
  people
• 6:19
  lose
• 6:19
  jobs,
• 6:20
  but
• 6:20
  people
• 6:21
  also
• 6:21
  gain
• 6:22
  jobs.
• 6:22
  They
• 6:22
  might
• 6:22
  put
• 6:22
  those,
• 6:23
  those
• 6:23
  dollars
• 6:24
  into
• 6:24
  e
• 6:24
  commerce
• 6:24
  strategy.
• 6:25
  They
• 6:25
  might
• 6:25
  put
• 6:25
  those
• 6:26
  dollars
• 6:26
  into
• 6:26
  investing
• 6:27
  in
• 6:27
  agentic
• 6:27
  AI
• 6:28
  and
• 6:28
  the
• 6:28
  way
• 6:28
  people
• 6:28
  can
• 6:29
  shop
• 6:29
  for
• 6:29
  makeup
• 6:29
  online.
• 6:30
  Right.
• 6:32
  But
• 6:32
  yes,
• 6:32
  I
• 6:33
  guess
• 6:33
  you're
• 6:33
  reading
• 6:33
  that
• 6:33
  correct.
• 6:34
  I
• 6:34
  think
• 6:34
  it's,
• 6:35
  it
• 6:35
  has
• 6:35
  to
• 6:36
  be
• 6:36
  a
• 6:36
  strategy
• 6:36
  every.
• 6:37
  Every
• 6:37
  year,
• 6:38
  Every
• 6:38
  quarter.
• 6:38
  Yeah.
• 6:39
  Which
• 6:40
  is
• 6:40
  an
• 6:40
  interesting
• 6:40
  word
• 6:40
  because
• 6:41
  that's
• 6:41
  the
• 6:41
  word
• 6:41
  they're
• 6:41
  using
• 6:41
  too.
• 6:42
  They're
• 6:42
  using
• 6:42
  restructuring
• 6:43
  as
• 6:43
  the,
• 6:44
  the,
• 6:44
  the,
• 6:45
  the
• 6:45
  modus
• 6:46
  operandi
• 6:46
  here
• 6:46
  for
• 6:47
  what
• 6:47
  they're
• 6:47
  doing.