Estée Lauder Companies to Slash Up to 3,000 Additional Positions Amid CEO-Led Restructuring Efforts
Estée Lauder Cos. Announces Additional Job Cuts and Raises Profit Outlook
Estée Lauder Cos. plans to cut as many as 3,000 more jobs, bringing the total number of roles to be eliminated to 10,000. This is up from the company's previous target of 7,000 announced a year ago. The move is part of Estée Lauder's efforts to reduce staff at US department stores and shift more sales online to faster-growth channels such as Amazon.com and TikTok Shop.
The company, which has a global workforce of about 57,000, according to its website, is aiming to achieve annual savings of up to $1.2 billion before taxes. This will be in addition to the $200 million of savings already expected from the previous job cuts. The turnaround plan, led by Chief Executive Officer Stéphane de La Faverie, who took over in January 2025, is aimed at revamping the conglomerate after three years of annual sales drops.
Estée Lauder's latest job cuts reflect the company's efforts to adapt to changing market conditions and consumer behavior. The CEO is trying to shift the company's focus towards online sales and faster-growth channels. The company's shares surged nearly 60% in the year or so after De La Faverie became CEO, buoyed by investor optimism that he was making headway turning around the cosmetics conglomerate. However, they have fallen 27% in 2026, dragged down by results in February that disappointed investors and by the ongoing talks with Puig Brands SA.
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The company has raised its profit outlook for the remainder of the fiscal year, with adjusted earnings per share expected to be in the range of $2.35 to $2.45. This is above analyst estimates, which were in the range of $2.05 to $2.25. Organic net sales growth is expected to be 3%, which is at the high end of the range provided in February.
| Company | Estimated Earnings per Share (EPS) | Previous Estimate |
|---|---|---|
| Estée Lauder | $2.35 to $2.45 | $2.05 to $2.25 |
| (Previous Estimate) | N/A | $2.05 to $2.25 |
The company has not provided any additional details about a proposed merger with Spanish beauty giant Puig Brands SA. Estée Lauder's turnaround plan is progressing, with the company's latest results indicating a sign of improvement in the business.
Investor Takeaway
Estée Lauder Companies is undergoing significant restructuring efforts, including job cuts, to boost its turnaround plan.
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