U.S.-based cosmetics and personal care giant Estée Lauder has expanded its previously announced layoff plan from 7,000 employees to a total target of 10,000. Through its global transformation program, the company aims to reduce costs, improve operational efficiency, and reverse a sales decline that has continued for three consecutive years.
Estée Lauder, which employs approximately 57,000 people worldwide, is preparing to restructure several business units, particularly store operations. The move is expected to generate around $200 million in additional savings.
As part of the broader transformation plan, annual pre-tax savings could reach $1.2 billion. In this context, Estée Lauder aims to simplify its cost structure while adapting more rapidly to changing consumer habits.
The most notable shift in the company’s strategy is taking place across its sales channels. Under the leadership of CEO Stéphane de La Faverie, Estée Lauder plans to focus more strongly on high-growth digital platforms.
E-commerce and social commerce channels such as Amazon and TikTok Shop are at the center of the cosmetics giant’s new growth strategy. The move shows that digitalization in the beauty and personal care industry is no longer just a supporting channel, but one of the main engines of growth.
Estée Lauder’s restructuring process once again brings the importance of cost discipline, digital channel investments, and direct-to-consumer strategies to the forefront in the global cosmetics market.
