Estée Lauder has announced a major expansion of its restructuring plan, raising the number of planned job cuts to between 9,000 and 10,000 worldwide. This represents about 17.5 per cent of its 57,000 employees. The company had earlier estimated 5,800 to 7,000 cuts, but the new figure reflects deeper changes aimed at saving around $1.2 billion annually.
Most of the additional reductions will come from department store positions, as the beauty giant shifts away from traditional retail channels. Instead, it is focusing on fast-growing digital platforms such as Ulta, Sephora, Amazon, and TikTok Shop.
The restructuring comes as Estée Lauder explores a potential merger with Puig, the Spanish luxury group behind brands such as Jean Paul Gaultier, Carolina Herrera, and Rabanne. If completed, the deal would create a $40 billion powerhouse in the fragrance and beauty industry, combining Puig’s portfolio with Estée Lauder’s brands such as Clinique, M.A.C, and Tom Ford.
Despite the layoffs, Estée Lauder reported stronger financial results. Net sales rose 4.6 per cent in the recent quarter to $3.71 billion, with growth across skincare, makeup, fragrance, and hair care. Organic sales are expected to grow about 3 per cent for the rest of the fiscal year, assuming no further disruption from geopolitical tensions, particularly in the Middle East.
The expanded job cuts underline the company’s push to streamline operations, strengthen profitability, and prepare for a possible merger that could reshape the global beauty market.