In a major restructuring push, The Estée Lauder Companies has announced plans to cut up to 3,000 additional jobs globally while raising its annual profit forecast, signaling a sharper focus on cost control and growth.
The company said total planned job reductions will now reach between 9,000 and 10,000 roles, up from an earlier estimate of up to 7,000. It aims to achieve cost savings of up to $1.2 billion. At the higher end, the cuts would account for about 17.5% of its global workforce of 57,000 employees as of June 30, 2025.
The announcement comes as the company continues discussions to merge with Puig, which owns Jean Paul Gaultier. Commenting on the development, an analyst said, “The increase in planned job cuts could be an indication that in light of merger plans, Estee Lauder will be able to shed more positions on its side while retaining Puig employees.”
More than 70% of the additional job cuts will come from department store roles. This aligns with the company’s strategy to shift toward faster-growing digital and specialty retail channels, including Ulta, Sephora, Amazon and TikTok Shop.
Under CEO Stephane de La Faverie’s “Beauty Reimagined” strategy, the company is focusing on premium product launches and supply chain optimisation. This approach has helped improve quarterly sales in key luxury markets such as China and Europe.
The company now expects full-year adjusted earnings between $2.35 and $2.45 per share, compared to its earlier forecast of $2.05 to $2.25. It also expects organic net sales growth at the higher end of its earlier 1% to 3% range.
However, the outlook assumes no worsening of geopolitical conditions, including tariffs, consumer sentiment shifts or business disruptions in the Middle East beyond May 2026.
Following the announcement, the company’s shares rose about 11% in premarket trading.
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