THE WHAT? Estée Lauder plans to cut up to 3,000 additional jobs globally as part of an expanded restructuring programme.
THE DETAILS The company has increased its total planned job cuts to between 9,000 and 10,000 roles, up from a previous estimate of 7,000, representing up to 17.5% of its global workforce. The move is aimed at delivering up to US$1.2 billion in annual cost savings.
More than 70% of the additional cuts will come from department store roles, reflecting a strategic shift toward faster-growing channels such as specialty retail and e-commerce, including platforms like 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.
THE WHY? The expanded restructuring reflects Estée Lauder’s efforts to improve profitability, rebalance its channel mix and navigate ongoing macroeconomic and geopolitical challenges.
Source: Reuters
