Aug. 19 at 10:37 AM
$EL Estee Lauder estimates job cuts at 'high end' of 9,000-10,000 range
Relating specifically to the restructuring program component of the PRGP, through June 30, 2026, the company has recognized total cumulative charges under the restructuring component of the PRGP of
$1.4 billion, consisting primarily of employee-related costs. In fiscal 2026, for the fourth quarter and full-year, the Company recognized charges of
$0.3 billion and
$0.8 billion, respectively. As noted above, approvals for specific initiatives under this restructuring program were concluded as of June 30, 2026. Once all approved initiatives are fully implemented, the restructuring program component of the PRGP is expected to result in restructuring and other charges slightly above the high-end of the previously announced range of
$1.5 billion and
$1.7 billion, before taxes.
This consists of employee-related costs, asset-related costs, contract terminations and other costs associated with implementing these initiatives. The restructuring program is expected to yield annual gross benefits of approximately
$1.2 billion, at the high-end of the previously announced range of between
$1.0 billion and
$1.2 billion, before taxes, to help restore operating margin, offset inflation and fuel increased reinvestments in consumer-facing areas to drive sustainable sales growth. The company estimates a final net reduction in positions of approximately 10,000, at the high-end of the previously announced range of 9,000 to 10,000.
This net reduction takes into account the elimination of positions after retraining and redeployment of certain employees in select areas. The restructuring program's focus includes the (i) reorganization and rightsizing of certain areas, (ii) simplification and acceleration of processes, (iii) outsourcing of select services and (iv) evolution of go-to-market footprint and selling models, all to help rebuild operating margin and also fuel reinvestment in consumer-facing areas to drive sustainable sales growth.
