Estee Lauder (NYSE:EL) shares surged over 14% intra-day today following the announcement of its Q2 earnings that exceeded expectations and the unveiling of a workforce reduction plan.

The cosmetics giant reported second-quarter earnings per share (EPS) of $0.88, surpassing the consensus prediction of $0.54. Its revenue reached $4.28 billion, exceeding expectations of $4.19 billion.

However, Estee Lauder adjusted its yearly profit outlook downwards. It now anticipates an adjusted EPS for the full year 2024 to range between $2.08 and $2.23, a decrease from its earlier forecast of $2.17 to $2.42, against an analyst consensus of $2.33.

In a move to streamline operations and reduce expenses, Estee Lauder revealed plans to cut 3% to 5% of its staff as part of a broader restructuring effort.

This cost-cutting initiative is set to begin in the third quarter of fiscal year 2024, with expected restructuring and related charges estimated between $500 million and $700 million, pre-tax.

The restructuring aims to yield annual gross savings of $350 million to $500 million, before taxes. Estee Lauder plans to reinvest a portion of these savings into consumer-focused areas to drive sustainable and profitable growth.