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Estée Lauder’s chief executive Fabrizio Freda is to retire after nearly 15 years leading the US-based beauty company.
The group, whose brands include Clinique and MAC cosmetics, said on Monday it was “well advanced” in its succession planning for the role and that the board had already “considered many highly qualified internal and external candidates”.
Freda, who will step down at the end of June next year, will continue to oversee the company’s strategic, financial and investment functions until a successor is appointed, the company said. This includes implementing a turnaround plan as Estée Lauder cuts back its workforce and works to shore up its margins.
The group has been under pressure due to a slow recovery in Asia, with shares having fallen about a third since the start of the year.
“We look forward to celebrating Fabrizio’s many amazing accomplishments as his formal retirement date nears. Until then the board, Fabrizio and the entire leadership team are laser-focused on navigating the current challenges faced by the company,” said executive chair William P. Lauder.
The change comes shortly after the company announced in July its longtime chief financial officer would be replaced by Akhil Shrivastava, an internal candidate, later this year.
Freda, 66, joined Estée Lauder in 2008 as president and chief operating officer and was appointed chief executive a year later.
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