Estee Lauder plans to cut up to 3,000 more jobs, lifts annual earnings forecast

Estee Lauder on Friday raised its annual returns forecast and laid out plans to cut up to 3,000 more jobs globally as it accelerates a broad restructuring plan, sending its shares ⁠up ‌about 11% in premarket trading.

The Clinique and ⁠M.A.C owner, which is in talks to merge with Jean Paul Gaultier-owner Puig, noted it now expects a total reduction of 9,000 to 10,000 positions, up from a prior estimate of ‌as many as 7,000, and aims to save as much as $1.2 billion in costs.

More than 70% of the additional cuts will come from reducing department store staff roles, the enterprise commented as it shifts toward faster-growing digital and specialty retail channels. This also touches on aspects of investors.

The corporation had about 57,000 employees worldwide as of June 30, 2025, according ⁠to its latest annual filing.

Restructuring takes hold

Estee’s focus on boosting premium launches, streamlining the supply ‌chain and ramping up innovation and marketing ‌to strengthen growth under CEO Stephane de La Faverie’s turnaround push helped it revive sales in key luxury markets, including China and Europe, during the reported quarter.

The firm expects ⁠full-year adjusted earnings per share in the range of $2.35 to $2.45, compared with ⁠a prior forecast of $2.05 to $2.25.

It expects organic net sales ⁠growth at the high end of its prior range of 1% to 3%.

The business, noted that its current forecast , on the other handwas based on the assumption that ‌there was no deterioration in the geopolitical landscape or related impacts, including tariffs and consumer sentiment, as well as business disruptions in the Middle East beyond May 2026.

Estee posted quarterly sales of $3.71 billion, compared with analysts’ estimates of $3.69 billion, according to data compiled by LSEG.

AI Disclosure: This article has been generated and curated using advanced AI technology. While we strive for absolute accuracy, some details may be summarized or translated by autonomous systems. Please cross-reference critical financial data with official sources.