Cosmetics powerhouse Estee Lauder revealed on Friday it will eliminate up to 3,000 additional positions worldwide while boosting its yearly earnings outlook, as the company accelerates a comprehensive restructuring initiative. The announcement sent company stock soaring approximately 11% during pre-market trading.
The beauty conglomerate behind Clinique and M.A.C brands, currently in discussions for a potential merger with Puig (owner of Jean Paul Gaultier), disclosed that total workforce reductions will now reach between 9,000 and 10,000 positions. This represents an increase from the previously announced target of up to 7,000 job cuts, with the company targeting cost savings of up to $1.2 billion.
The expanded reduction plan could affect roughly 17.5% of Estee Lauder’s global workforce of 57,000 employees as of June 30, 2025, based on the company’s most recent annual report.
“The increase in planned job cuts could be an indication that in light of merger plans, Estee Lauder will be able to shed more positions on its side while retaining Puig employees,” said eMarketer analyst Sky Canaves.
According to company officials, more than 70% of the new job eliminations will target department store personnel as the organization pivots toward rapidly expanding digital and specialty retail platforms including Ulta, Sephora, Amazon and TikTok Shop.
Under CEO Stephane de La Faverie’s “Beauty Reimagined” initiative, the company’s emphasis on premium product launches and supply chain optimization has generated improved quarterly revenue in luxury markets across China and Europe.
Management updated its full-year adjusted earnings projection to a range of $2.35 to $2.45 per share, surpassing the previous forecast of $2.05 to $2.25. The company also anticipates organic revenue growth at the upper portion of its earlier 1% to 3% projection.
However, Estee Lauder cautioned that current projections assume no worsening of global political tensions or related consequences, including potential tariffs and shifts in consumer confidence, along with business interruptions in Middle Eastern operations beyond May 2026.
The beauty manufacturer reported quarterly revenue of $3.71 billion, exceeding analyst predictions of $3.69 billion compiled by LSEG. Adjusted earnings of 88 cents per share also surpassed expectations of 65 cents per share.
