Estée Lauder continues to deepen the adjustment of its business. The American group has revised upwards the cost of its reorganization plan, which now stands at 1.750 billion dollars, 13% more than the initially planned figure. The objective of the plan is to gain efficiency and improve the company's results.
This increase in cost is mainly due to staff cuts and personnel restructuring processes undertaken in recent months, in addition to other expenses linked to assets, contract cancellations, and additional items.
The adjustment plan will be executed throughout this year and is part of a strategy with which the firm expects to generate, starting in 2027, an annual gross profit of up to 1.2 billion euros.
More than 10,000 jobs affected
Last May, the group had already announced the expansion of layoffs to 10,000 employees, 40% more than originally planned and equivalent to 15% of its entire workforce. Most of these cuts fall on store personnel.
Improved results
Despite the cost of the restructuring, the group's figures show a notable recovery. In the first nine months of the current fiscal year (up to March 31), Estée Lauder invoiced 11.422 billion dollars, 4.64% more than in the same period of 2025.
Operating profit also took a significant turn: the company closed those nine months with an operating profit of 819 million dollars, compared to operating losses of 395 million recorded a year earlier.
For the full fiscal year, the group maintains its forecasts of a 3% organic sales growth, with an adjusted operating margin of between 10.7% and 11%.