THE WHAT? Estée Lauder has increased the expected cost of its restructuring programme to as much as US$1.75 billion as it continues to streamline operations and improve business performance.
THE DETAILS The revised estimate is up from the company’s previous forecast of approximately US$1.55 billion and includes costs related to workforce reductions, asset impairments, contract terminations and other restructuring expenses. Estée Lauder has previously announced plans to eliminate up to 10,000 jobs as part of the programme. The company is also shifting its commercial focus towards faster-growing channels, including Amazon and TikTok Shop, expanding its offering of lower-priced products to attract younger consumers, and seeking to exit an office lease.
THE WHY? The restructuring is designed to improve operational efficiency, reduce costs and reposition the business for long-term growth following a period of weaker sales and changing consumer purchasing behaviour.
Source: Bloomberg
