Beauty Health, a prominent skin-care company known for its popular brands such as Hydrafacial, SkinStylus, and Keravive, has announced its decision to implement a cost-saving strategy. As part of this initiative, the company plans to reduce its global workforce by 10% in an effort to streamline its operations.
The first phase of the workforce reduction plan will result in the termination of 95 positions, ultimately reducing the total number of employees to 893. Within the United States, 63 employees will be affected, which accounts for approximately 10% of the domestic workforce. Internationally, about 32 employees, representing approximately 9% of the international workforce, will be impacted.
In light of these workforce changes, Beauty Health anticipates incurring charges totaling approximately $5.1 million in the final quarter of the year. These charges will primarily be attributed to pay, cash severance payments, and other related employee costs.
Beauty Health aims to complete the first phase of its savings plan by the end of March. Throughout this stage, besides reducing its workforce, the company also intends to decrease non-headcount expenses. This includes reducing consulting fees, software expenses, professional services costs, and trade show expenses.
Earlier this week, Beauty Health announced a downward revision of its sales guidance for the year. The company now expects its sales to range between $385 million and $400 million, compared to the previously projected range of $460 million to $480 million. The revision comes as a result of lower-than-anticipated U.S. revenue and restructuring charges associated with device upgrades. Concurrently, Beauty Health has named Marla Beck as interim chief executive following the departure of former CEO and President Andrew Stanleick.