Despite a solid third quarter, which ended in late March, and an upward revision of its annual results, the American beauty giant announced that it could cut up to 10,000 jobs worldwide, instead of the 7,000 previously announced.
Both pessimistic…and optimistic.
That’s how one might summarize the stance of Estée Lauder and its CEO, Stéphane de la Faverie, as the American beauty group has just unveiled its first quarter of 2026, which is also the third quarter of its fiscal year, ending in late June.
While raising its annual profit forecast, Estée Lauder announced on May 1 thatits job-cutting plan would be larger than expected, andcould affect up to 9,000 to 10,000 employees worldwide (representing 17.5% of its total workforce, 57,000 people as of the end of June) instead of the 5,800 to 7,000 initially planned by the end of 2026.
Cuts at U.S. department stores
About three-quarters of these new cuts would affect staff at U.S. department stores, as Estée Lauder now intends to prioritize more dynamic digital and specialty retail channels (Amazon, Ulta, Sephora, TikTok Shop, etc.).
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Featured photo: © Estée Lauder Companies
