Estée Lauder raises planned job cuts from 7,000 to 9,000–10,000 roles

Estée Lauder Companies announced it has expanded its restructuring program and now expects a net reduction of approximately 9,000 to 10,000 positions globally, up from the previously communicated 5,800–7,000 range. The change is part of a broader Profit Recovery & Growth Plan aimed at restoring margins.

Management said it may cut as many as an additional 3,000 roles in connection with accelerated restructuring efforts, lifting the total target to the 9,000–10,000 range. The company forecasts the program will deliver roughly $1.0–$1.2 billion in annual gross benefits and will incur higher restructuring charges in the near term. These updates accompanied quarterly results that beat expectations and a raised fiscal-year outlook.

The company indicated that a significant portion of the additional reductions will come from department-store and in-store roles, while noting redeployment and retraining efforts where feasible. Investors reacted positively to the combination of cost actions and stronger-than-expected quarterly performance, with shares rising on the news. Estée Lauder reiterated that forecasts assume no further material deterioration in geopolitical conditions or tariff impacts.

The move is framed as a strategy to accelerate margin recovery and deleverage the balance sheet ahead of potential strategic options; Estée Lauder has also been reported to be in talks with Puig, a development that may influence staffing decisions. Company statements emphasize that the restructuring's timeline and scope will be implemented subject to local regulations and consultation processes.

Analysts note the expanded cuts will increase near-term charges but could materially improve adjusted operating margins if the projected $1.0–$1.2 billion in annual savings materializes. Market watchers will focus on execution risk, retail sell-through in key regions such as China and Korea, and any further details management provides on timing and cash flow impact in coming quarters.