New York City, New York-based Estée Lauder, a multinational cosmetics manufacturer and marketer of makeup, skincare, perfume, and hair care products, has announced a major restructuring plan and cost-cutting initiative.
The restructuring plan will impact between 5,700 and 7,000 employees companywide.
According to President and Chief Executive Officer Stéphane de La Faverie...
The Estée Lauder Company is absolutely committed to change – absolutely committed to bring speed and agility to everything we are doing so we can rebuild this company to the rightful place that it belongs, which is at the top.
We are excited to launch Beauty Reimagined, a bold strategic vision to restore sustainable sales growth and achieve a solid double-digit adjusted operating margin over the next few years as we aim to become the best consumer centric prestige beauty company.
While we recognize there is much work to do, we are confident that Beauty Reimagined is the way to realize our ambition. We are significantly transforming our operating model to be leaner, faster, and more agile, while taking decisive actions to expand consumer coverage, step-change innovation, and increase consumer-facing investments to better capture growth and drive profitability. Together with our talented employees, fundamental values, and incredible brands, Beauty Reimagined positions us to lead the prestige beauty industry once again.”
Reimagine the way we work: Remove complexity and simplify how we work to (i) allow greater focus on execution excellence for the consumer, (ii) unburden our smaller brands so that they can be more successful in our organization while driving greater benefits of scale for our larger brands, and (iii) empower faster decision-making, in part through a flatter and leaner organization.
The Company now estimates a net reduction in positions of 5,800 to 7,000, including approvals to date. This net reduction takes into account the elimination of positions after retraining and redeployment of certain employees in select areas.
Approvals for specific initiatives under this restructuring program, in total, are still expected to be completed by the end of fiscal 2026. The restructuring program’s focus includes (i) reorganization and rightsizing of certain areas and (ii) simplification and acceleration of processes, along with the newly added focus on (i) outsourcing of select services and (ii) evolution of go-to-market footprint and selling models.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something terrible hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. While many employees can read the writing on the wall, why do most assume it’s targeted at someone else? Are you now wondering, Am I Next?