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Over 70% of new cuts are tied to department stores as the brand shifts towards online retailers.
May 4, 2026
By: Rachel Klemovitch
Assistant Editor
Estee Lauder announced plans to eliminate 9,000 to 10,000 positions as part of its restructuring. This is an increase from the original estimate of 5,800 to 7,000.
Over 70% of these cuts are tied to department-store roles, as the company shifts toward digital and specialty channels such as Ulta, Sephora, Amazon, and TikTok Shop.
Stéphane de La Faverie, president and CEO, said,
“Fiscal 2026 is promising to be the pivotal year we intended, one in which we restore organic sales growth and expand our adjusted operating margin for the first time in four years.”
The additional cuts are expected to generate another $200 million in savings as CEO Stéphane de la Faverie pushes a broad overhaul, says Bloomberg.
Estee Lauder Cos Reports Q3 2026 Results
Estee Lauder Companies Estimates $1.14 Billion in Restructuring
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