Estée Lauder Companies has confirmed the elimination of over 2,600 positions as part of its expansive restructuring initiative, aiming to reduce its global workforce by up to 7,000 employees by the end of fiscal 2026. This move follows a 10% decline in third-quarter sales and a 42% drop in net profit, underscoring the challenges the cosmetics giant faces in a shifting global market.

In February 2025, Estée Lauder unveiled an ambitious restructuring plan, expanding its initial job cut projections from 3,000 to between 5,800 and 7,000 roles. The company has already approved $623 million in severance costs, with the total restructuring expected to cost up to $1.6 billion. These measures aim to achieve annual savings of up to $1 billion, which will be reinvested into consumer-facing areas to drive sustainable sales growth.

For the third quarter of fiscal 2025, Estée Lauder reported net sales of $3.55 billion, a 10% decrease from the previous year. Net profit fell to $306 million, down from $531 million in the same period last year. Despite these declines, the company's adjusted earnings per share of 65 cents surpassed analyst expectations of 31 cents.