Initially, a year ago, the group announced plans to reduce the staff by 7 thousand people, but now the program has been expanded, Retail Detail reports. The bulk of the new layoffs will fall on department store employees – more than 70% of the cuts will affect the retail segment.
The strategic course being pursued by new CEO Stéphane de La Favery, appointed in January 2025, involves shifting the focus of sales towards digital channels. The company is strengthening its presence on online platforms, including Amazon and TikTok Shop, while gradually reducing its dependence on the traditional offline retail model.
The company estimates that the new wave of restructuring will increase annual pre-tax savings to $1-1.2 billion.
Estée Lauder had about 57,000 employees at the end of June 2025. Despite the large-scale optimization, the company showed growth: in the third quarter, revenue increased by 5% and reached $3.71 billion, exceeding analysts’ expectations. Adjusted earnings amounted to 0.88 dollars per share, compared to the forecast of 0.65 dollars.
The perfume segment showed the strongest dynamics – sales grew by about 10% year-on-year. At the same time, the categories of skin care, decorative cosmetics and hair products showed weak or no growth.
In its outlook for the next fiscal year, which ends in June 2027, the company expects organic revenue growth of 3-5%. Analysts, meanwhile, have laid out a more restrained scenario of around 3.7%.
In parallel, Estée Lauder continues to explore a possible merger with Spanish cosmetics manufacturer Puig. Negotiations are at an early stage, and the final terms of the deal have not yet been agreed.
