Estée Lauder Declares Significant Job Reductions in Accelerated Restructuring Strategy
Global beauty conglomerate, Estée Lauder Companies, has unveiled plans to eliminate up to 3,000 additional roles, intensifying its restructuring efforts. This move increases the total anticipated layoffs to a staggering 9,000 to 10,000 positions globally.
Estée Lauder, the parent company of renowned brands such as Clinique, M.A.C, La Mer, and Tom Ford, disclosed the augmented job cuts on May 1, 2026. This represents a significant 17.5% of its 57,000-strong global workforce. Initially, the company had projected reductions of 5,800 to 7,000 positions, but amplified the target as a part of its ‘Beauty Reimagined’ turnaround plan.
Over 70% of the additional cuts will impact point-of-sale roles at department stores and standalone retail locations. This comes as Estée Lauder shifts its focus towards high-growth digital channels. These include popular platforms like Ulta, Sephora, Amazon, and TikTok Shop. The restructuring is projected to save up to $1.2 billion in annual costs.
Despite the workforce reductions, the company reported robust third-quarter results with net sales surging 4.6% to $3.71 billion, surpassing analyst expectations. CEO Stéphane de La Faverie labeled fiscal 2026 as ‘the pivotal year’ for restoring organic sales growth. The expanded restructuring arrives as Estée Lauder continues merger discussions with Spanish luxury group Puig, potentially forming a $40 billion beauty behemoth.
Source: CNBC