Estée Lauder cuts thousands of jobs as sales slump across all regions
The Estée Lauder Companies (ELC) has confirmed it has cut 3,200 jobs with a further 3,800 roles at risk, as the US beauty giant’s 'Beauty Reimagined' restructuring gathers pace following a sharp downturn in sales.
ELC first announced in February that it was seeking to eliminate up to 7,000 positions worldwide, more than double its original plan, in a bid to save as much as US$1 billion (£741 million) annually and simplify its global structure.
The move comes as ELC reported an 8% drop in net sales for the year ending 30 June 2025, with revenues falling across all geographic regions. The Americas slipped by 3% to US$4.41 billion (£3.27 billion), EMEA plunged by 13% to US$5.38 billion (£3.99 billion), and Asia/Pacific was down by 7% to US$4.54 billion (£3.37 billion).
Overall, the business swung to a US$785 million (£581 million) loss, while adjusted operating income fell 28% year-on-year to US$1.15 billion (£850 million). In the fourth quarter alone, organic net sales tumbled 13%, with fragrance the only category to post growth.
Skincare was hit hardest, with sales down 17% led by Estée Lauder and La Mer. Makeup sales dropped 12% amid weakness at MAC and Too Faced, while haircare fell 15%. By contrast, fragrance sales grew 2%, buoyed by Le Labo, Jo Malone London and the launch of Balmain Beauty.
Under new CEO Stéphane de La Faverie, who took the helm earlier this year, ELC has pledged to restore profitability through new product launches, tighter cost control and structural changes. The company expects restructuring charges of US$1.2-$1.6 billion (£0.89-£1.2 billion) before tax in 2026 as part of these adjustments.
Despite the turbulence, ELC has pressed ahead with digital expansion, launching eight brands on Amazon’s US Premium Beauty store and opening 18 new doors across Shopee and TikTok Shop in Southeast Asia. In the UK, The Ordinary debuted on TikTok and Amazon.
De La Faverie said: "Having closed fiscal 2025 as expected, we remain wholly focused on continuing to execute our strategic vision of Beauty Reimagined. Despite continued volatility, we enter fiscal 2026 with momentum and confidence to return to sales growth after three years of declines."
Tariff headwinds under the Trump administration remain a drag, with management warning that US trade policy could reduce 2026 profit by around US$100 million (£74 million). Shares fell 8% in premarket trading following the results announcement.
