Estée Lauder announces extensive restructuring plan
Faced with a 6% drop in sales, the Estée Lauder Companies group has announced a turnaround plan, Beauty Reimagined, which will result in the loss of between 5,800 and 7,000 jobs by 2026.
A worrying drop in sales
The American cosmetics giant is going through a difficult period. Owner of prestigious brands such as Clinique, Jo Malone, La Mer and Balmain Beauty, Estée Lauder saw its sales fall by 6% in the second quarter of its fiscal year, to $4 billion. Net profit plunged by $590 million, a wake-up call for the group, which needs to react quickly.
Beauty Reimagined: a strict restructuring plan
To counter this decline and reassure shareholders, Stéphane de La Faverie, CEO since January 2025, has unveiled a strategic plan called Beauty Reimagined. This program aims to restore sustainable growth and improve the Group’s profitability over the medium term. One of the key measures is the elimination of between 5,800 and 7,000 jobs, far more than the 3,000 cuts envisaged a year ago.
The Group justifies these cuts by the need to simplify and accelerate its processes, as well as tooutsource certain services. However, it has not specified which regions and sectors will be affected by the redundancies.
A fast-changing luxury market
While economic conditions may seem gloomy for Estée Lauder, the horizon could brighten as early as 2025. A report by Barclays forecasts +2% growth for the luxury goods industry, thanks in particular to increased spending in the United States (+6%).
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