March 26 (Bloomberg) -- Estee Lauder Cos., the maker of Clinique and Bobbi Brown cosmetics, named Fabrizio Freda chief executive officer as it begins a four-year cost-cutting plan.

Freda, 51, the current chief operating officer, will become CEO on July 1 and also join the board, New York-based Estee Lauder said today in a statement. CEO William Lauder, 48, will become chairman.

Estee Lauder announced a plan last month to reduce headcount, cut costs and increase sales outside the U.S. The company will try to offer product lines at a variety of prices so it can retain cost-conscious customers, Freda said today in a telephone interview.

“We are growing market share in the United States, as we speak, on brands like Clinique and Lauder,” Freda said. “We are growing because they are on the receiving end of consumers trading down from more expensive brands or products within the same channel.”

The cosmetics seller will work to trim by 10 percent the number of products it offers by June and by another 10 percent a year later, Freda said. The reductions will come from certain products that don’t sell well and those whose cost structures no longer fit with the company’s goals, he said.

Estee Lauder rose 75 cents, or 3 percent, to $26 at 4:15 p.m. in New York Stock Exchange composite trading. The shares lost 16 percent this year.

The company named Freda as president and COO in March 2008, saying it intended to appoint him CEO within two years. Freda, who previously spent 20 years at Procter & Gamble Co., said he doesn’t know if he will name a new COO.

To contact the reporter on this story: Allison Abell Schwartz in New York at aabell@bloomberg.net.

Last Updated: March 26, 2009 16:16 EDT