Estée Lauder has announced plans to cut up to 3,000 additional jobs globally, expanding its total planned workforce reduction to between 9,000 and 10,000 roles, representing up to 17.5 percent of its global workforce. The move is central to CEO Stéphane de La Faverie’s “Beauty Reimagined” strategy, designed to streamline operations, rebalance its channel mix, and deliver up to USD 1.2 billion in annual cost savings.
More than 70 percent of the additional cuts will come from department store roles, reflecting a deliberate strategic pivot away from traditional retail towards faster-growing channels including specialty retail and e-commerce platforms such as Sephora, Ulta, Amazon, and TikTok Shop. The shift signals a fundamental rethinking of how the company engages with consumers, prioritising digital and high-growth retail environments over legacy department store distribution.
The expanded restructuring comes as Estée Lauder navigates a challenging macroeconomic environment marked by geopolitical uncertainty, shifting consumer behaviour, and intensifying competition across the global beauty landscape. The company has been under pressure to improve profitability and accelerate its recovery following a period of underperformance, particularly in key markets including China and travel retail.
Under de La Faverie’s leadership, Estée Lauder has been repositioning its brand portfolio for the next phase of growth, focusing on innovation, digital acceleration, and operational efficiency. The Beauty Reimagined strategy reflects a broader acknowledgement that the luxury beauty market is evolving rapidly, with consumers increasingly discovering and purchasing products through online and specialty retail channels rather than traditional department stores.
The restructuring is expected to deliver meaningful improvements in operating margins and free up investment capacity for high-priority growth initiatives. As Estée Lauder simultaneously advances its potential merger discussions with Spain’s Puig Brands, the company is clearly signalling its intent to emerge as a leaner, more agile competitor in the global premium beauty market.v
