Beauty giant The Estée Lauder Companies (ELC) has significantly escalated its global restructuring efforts, raising its total planned workforce reductions to between 9,000 and 10,000 roles.
This expansion adds up to 3,000 more job cuts than previously estimated as the company accelerates its “Beauty Reimagined” turnaround plan.
Strategic Pivot Away from Traditional Retail
The revised restructuring plan targets a leaner operating model, with more than 70% of the new cuts affecting point-of-sale and demonstration roles within department stores.
This move underscores a decisive shift away from legacy distribution formats toward high-growth digital and specialty channels, such as Amazon, TikTok Shop, and Sephora.
As of 2025, the company employed approximately 57,000 people worldwide. The current reduction target represents roughly 17.5% of its global workforce.
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Estée Lauder Financial Recovery and “Beauty Reimagined”
Despite the layoffs, Estée Lauder reported a stronger-than-expected third quarter for fiscal 2026, with net sales rising 5% to $3.71 billion.
CEO Stéphane de La Faverie described 2026 as a “pivotal year,” marking the first time in four years the company expects to expand its adjusted operating margin.
The expanded “Profit Recovery and Growth Plan” (PRGP) is now expected to:
- Generate annual cost savings of between $1 billion and $1.2 billion.
- Incur restructuring charges estimated at $1.5 billion to $1.7 billion.
- Modernize infrastructure to support omnichannel consumer experiences.
Future Outlook and Integration
Approvals for specific restructuring initiatives are slated for completion by the end of fiscal 2026, with most actions concluding in fiscal 2027.
Analysts suggest the deepened cuts may also prepare the company for potential merger activity, such as the rumored discussions with fragrance house Puig.
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About the Author
Sahiba Sharma
Contributing Writer