Estee Lauder will lay off between 5,800 and 7,000 employees after second-quarter sales plummeted 6% and operating income tanked to a $580 million loss.

Estee Lauder now intends to slash up to 7,000 positions from its workforce, the cosmetics company, known for brands like Mac and Clinique, announced Tuesday.

Estée Lauder Cos. Inc.’s stock fell 6.4% early Tuesday, after the beauty and cosmetics company swung to a fiscal second-quarter loss and announced an expansion of its current restructuring aimed at restoring sustainable sales growth.

Estee Lauder is the latest company to warn of the impact a tit-for-tat tariff war could have on their fortunes. Drinks giant, Diageo, which makes Guinness, Johnnie Walker, Baileys and Smirnoff warned on Tuesday that tariffs on Mexico and Canada - if they go ahead - "could very well" impact its business.

As the company’s sales fell 6 percent in the second quarter, the owner of namesake Estée Lauder, Jo Malone, Tom Ford, Clinique and more, announced plans to ramp up its restructuring program, from 3,000 to between 5,800 to 7,000.

Estee Lauder said it’s expanding its restructuring plan to include job cuts anywhere from 5,800 to 7,000 by fiscal 2026 as the global beauty company tries to boost sales and profits.

The company anticipates restructuring and other charges of between $1.2bn and $1.6bn as it overhauls the business.