Estee Lauder Boosts Profit Forecast, Plans Major Cuts

Estee Lauder is accelerating its restructuring plan, announcing an additional reduction of up to 3,000 jobs globally. This brings the total anticipated workforce reduction to between 9,000 and 10,000 positions. The company has raised its annual profit forecast, now expecting adjusted earnings per share between $2.35 and $2.45, up from its previous projection.

The restructuring initiative is designed to achieve significant cost savings, targeting up to $1.2 billion. Over 70% of the newly planned cuts will impact department store roles, reflecting a strategic shift towards rapidly growing digital and specialty retail channels. As of June 30, 2025, Estee Lauder employed approximately 57,000 people worldwide.

During the reported quarter, the company saw revived sales in key luxury markets like China and Europe, driven by a focus on premium product launches, supply chain streamlining, and enhanced innovation and marketing. Estee Lauder anticipates organic net sales growth at the higher end of its 1% to 3% range.

This forecast assumes no significant geopolitical disruptions or related impacts on consumer sentiment and business operations in the Middle East beyond May 2026. Quarterly sales reached $3.71 billion, slightly exceeding analysts' estimates, while adjusted earnings per share of 88 cents surpassed expectations.