The cosmetics and skincare industry is supposed to be one of the safe spots in a down economy but that doesn't seem to be true any longer. Estee Lauder recently announced a four-year turnaround plan that will result in a six percent reduction in its work force and a freeze on merit pay increases. A total of 2,000 jobs will be cut over the next two years and a hiring freeze is in place. The news comes as Estee Lauder reported a fourth quarter net income that fell 30% to $158 million, or 80 cents a share, from $224.4 million, or $1.14 a share, a year earlier. During the most recent quarter ending December 31, sales of Estee Lauder's makeup brands, which also include Clinique and MAC fell 12 percent while sales of skin-care products fell 7.1 percent.

Pictured above are Hilary Rhoda, Gwyneth Paltrow, Elizabeth Hurley and Carolyn Murphy at the worldwide debut of the new Estee Lauder fragrance 'Sensuous' at Bloomingdale's in New York City last summer.

Cosmetics heir Leonard Lauder, chairman of the Estée Lauder Companies, has made New York's Whitney Museum of American Art feel pretty this week. He has donated $131 million which is the largest donation ever received by the museum in its 77-year history.Lauder is also the museum's chairman and donated the money through his arts foundation, The American Contemporary Art Foundation Inc. The money was given partially to ensure that museum will keep the Marcel Breuer-designed building on Madison Avenue at 75th Street even though it plans to open a satellite museum in the meatpacking district. The Whitney specializes in 20th and 21st- century American art and has the largest body of work by Alexander Calder in any museum. Lauder had a net worth of $3.2 billion in 2007 according to Forbes.

Estee Lauder makes some of the most beautiful perfume compacts around. Current designs includes the Great Wall of China, a crystal-covered feather, a tiny turtle and a sparkling sailboat. Perhaps the most extraordinary is the design they have created to celebrate the 100th anniversary of Neiman Marcus. The monarch butterfly is made of black enamel, orange and clear crystals and golden highlights. The compact is filled with Beautiful solid perfume and sells for $300.

Autoblog shot us an e-mail about this fragrant little story, and frankly, we're surprised this product didn't come around earlier. Estee Lauder's Aramis division has created a fragrance that mustang owners will no doubt want to keep in their glove boxes -- Mustang, the new fragrance for men, set to launch in July.

The Ford Mustang joins the ranks of brands teaming with the fragrance designer for cross-promotion purposes, including Donna Karan, Tommy Hilfiger and Coach. Their marketing folks no doubt had a meeting as well, because the fragrance is described as "bold, daring and legendary," words Ford's marketing people also associate with the vehicle.

The bold scents are lavender, ginger and lemon, while the daring is pipe tobacco and cedarwood. Legendary, represented by amber, fir balsam and patchouli, finishes off the scent.

The base model of the fragrance, so to speak, will be the cologne and aftershave, both of which will start at $20.

[via Autoblog.com]

When Sean "Diddy"Combs teamed up with Estée Lauder to create the men's cologne Unforgiven, he did it Diddy-style, with suggestive advertising that turned off a lot of retailers. The controversy didn't hurt sales and now he's back with Unforgivable Multi Platinum, a limited edition version of the original.

Comparing his new scent to a fine wine, he says this luxury version is a better grade of "juice". At $65 for 2.5 ounces, it sells for $10 more than the original version.

A blend of bergamot and iris, the scent is a bit more understated than you might expect from the flamboyant rapper. Always the ladies man, Combs is working on Unforgivable Woman, expected in stores this fall

This seashell-shaped evening clutch looks as if it was just unearthed from your grandmother's closet. That's because it could have come from Estée Lauder's closet. The Heritage Collection was created by Aerin Lauder and inspired by her grandmother, Estée. The golden evening clutch comes with a lipstick in a classic red and a golden compact with a blue enamel face. The set sells for $550.

[via NY Post]

When Tom Ford first partnered up with Estee Lauder I had my doubts. The king of sexy fashion teaming up with a makeup line headed toward a bit of a dowager image didn't seem like a natural fit. I stand corrected. Ford has managed to turn the old product lines of Youth Dew and Azurée hot again. While Azurée is a summery beachy line with coral tones, the new Youth Dew Amber Nude makeup line for fall is warmer with a touch of gold in the makeup for a gilded look. The look stresses a neutral mouth with a dark and dramatic eye. The Minaudiere limited edition comes with The Face and The Lip Polish and sells for $550.

The fragrance industry just hosted their 34th annual FiFi Awards, the industry's biggest event. The FiFis recognize the best scents, best packaging and best ad campaigns in the industry. Top honors for women's and men's luxe fragrances went to euphoria by Calvin Klein and Armani Code by Giorgio Armani, respectively. The other 2006 winners included:

• Best Women’s Direct Sell : So in Love by Victoria’s Secret Beauty
• Best Men’s Direct Sell: Today. Tomorrow. Always for Men by Avon
• Best Women’s Popular Appeal: Spirit by Antonio Banderas for Women
• Best Men’s Popular Appeal: Stetson Black
• Best Packaging Women's and Men's: Armani Privé by Giorgio Armani
• Best Televised National Advertising Campaign: Lovely by Sarah Jessica Parker

The Senior Corporate Vice President of Estée Lauder, Evelyn H. Lauder, was honored with the Lifetime Achievement Award for bringing "extraordinary ingenuity, dedication and inner resources [to her company and] to the fragrance industry as a whole."

Estee Lauder is famous for their elegant powder compacts that often feature designs like astrological symbols or intricate flowers rendered in Swarovski crystals. Usually the compacts feature pressed powder but for summer they have this beautiful golden collectible compact that is filled with bronzer. The compact sells for $60.

A Socialite's Life has the scoop on the next Tom Ford fragrance. As we've mentioned before, Ford has worked on the Youth Dew Amber Nude and the new version of Azuree. According to Miu, who received a reader tip, the new fragrance is Tom Ford Black Orchid. Given Ford's propensity for heady scents this seems like a good fit. I'm definitely thinking this will be a very lush and heavy floral doing its best to be sexy in a bottle.

And the Oscar swagfest begins... Estee Lauder has announced their 2006 Estee Lauder Luxury Beauty Spa Experience for nominees to indulge, relax and prepare for their big night with a spa experience. The Estee Lauder "Dream Team" will travel to each nominee and let them choose a customized spa day. Those in need of a little boost can check out the Perfectionist Power Facial by Dr. Jay Calvert which includes a light laser procedure and then a Power Patch placed on the area around the eye for 20 minutes. And for sunless tan addicts (like Charlize Theron) there is new Winning Glow Tanning Treatment which provides a full face and body exfoliation and bronzing with Estee Lauder's sunless tanners. A Bentley Continental Flying Spur will transport nominees to and from their Spa appointments and chauffeur the Estee Lauder Dream Team to the nominees on location. And of course there is a swag bag which includes Estee Lauder products, Manolo Blahnik sandals, Michael Kors sunglasses, a tiger's eye necklace, a set of Harcourt black crystal wine goblets and La Grande Dame Veuve Clicquot champagne (very similar to last year's offering).

Tom Ford's latest line for Estee Lauder will have the same retro-appeal that his first line. WWD reports that the Azurée collection is done up in that same robin's egg blue that was used in the 1960s and 1970s and features the same giant gold logo. Are people ready to step back in time? Ford's version of the other Estee classic Youth Dew has been a big seller. The Ford version of Azurée uses a mix of Tahitian gardenia petals, coconut and orange blossoms for a summery fragrance meant to conjure up the luxury life on the Mediterranean. The original, launched in 1969, was a citrusy floral. I can't decide if this look is charmingly retro or a touch too much like the old bottles of perfume found at garage sales. The proof will be in the scent, which launches in May.