Estée Lauder to eliminate up to 3,000 jobs

• Two-year restructuring program to eliminate up to 3,000 positions. 

 The Estée Lauder Companies will eliminate up to 3,000 jobs as part of a two-year restructuring program. The move includes the "reorganization and rightsizing of certain areas of the company as well as simplification and acceleration of processes."

More specifically, ELC will eliminate in the range of approximately 1,800 to 3,000 positions globally. That represents about 3-5% of its positions including temporary and part-time employees as of June 30, 2023. This reduction takes into account the elimination of some positions as well as retraining and redeployment of certain employees in select areas.

The restructuring is expected to be completed in fiscal 2026. ELC expects that the restructuring program will cost $500-$700 million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing these initiatives.

Once fully implemented, the company expects the restructuring program to yield annual target gross benefits of between $350 million and $500 million, before taxes, a portion of which is expected to be reinvested in consumer-facing activities. The net benefits are in addition to the between $800 million and $1 billion previously communicated as part of the profit recovery plan.