Estée Lauder Expands Restructuring Program, Announces Further Job Cuts
Estée Lauder Companies has announced plans to cut up to 3,000 additional jobs globally as part of an expanded restructuring program. This brings the total planned job reductions to between 9,000 and 10,000 positions.
The beauty giant, which owns brands including Clinique, M.A.C, and La Mer, aims to save as much as $1.2 billion in annual costs through the restructuring. At the upper end, the cuts represent approximately 17.5% of the company’s global workforce of 57,000 employees.
More than 70% of the additional cuts will come from department store roles. This reflects a strategic shift toward faster-growing channels such as:
- Specialty retail
- E-commerce platforms including Sephora, Ulta, Amazon, and TikTok Shop
The restructuring is part of CEO Stéphane de La Faverie’s “Beauty Reimagined” strategy, focused on streamlining operations and improving efficiency.
Despite the job cuts, Estée Lauder raised its annual profit forecast and reported third-quarter sales of $3.71 billion, beating analyst estimates. The company now expects organic net sales growth of around 3% for the full year. Estée Lauder is currently in talks to merge with Spanish fragrance giant Puig.
Source: CNBC