By Robb M. Stewart
Beauty Health plans to cut its global workforce by 10% in the first phase of a cost-saving push aimed at streamlining operations.
The skin-care company, whose brands include Hydrafacial, SkinStylus and Keravive, said Thursday the move will reduce its workforce to 893 employees and will include terminating 95 positions. The cuts will cover 63 employees in the U.S., representing about 10% of its domestic workforce, and roughly 32 employees elsewhere, which is about 9% of its international workforce.
With the loss of jobs, Beauty Health estimates it would book charges in the final quarter of the year of about $5.1 million related to pay, cash severance payments and other employee-related costs.
The company said it expects the first phase of its savings plan to be substantially complete by the end of March, and will see Beauty Health reduce its workforce and non-headcount expenses including consulting fees, software expenses, professional services and trade show expenses.
Earlier this week, Beauty Health lowered its sales guidance for the year to between $385 million and $400 million, from $460 to $480 million previously, after its third-quarter performance was overshadowed by lower-than-anticipated U.S. revenue and restructuring charges related to device upgrades. At that time, it said it had appointed director Marla Beck as interim chief executive with the departure of CEO and President Andrew Stanleick.
Write to Robb M. Stewart at robb.stewart@wsj.com
