Estée Lauder Companies’ restructuring costs revealed

By Lynsey Barber | Published: 2-Dec-2025
Colour Cosmetics Skin Care Finance

Beauty giant Estée Lauder Companies (ELC) has issued an update on its ongoing ‘Profit Recovery and Growth Plan’ (PGRP), including how much it has spent on its restructure

Estée Lauder Companies (ELC) has revealed how much it has spent on a major restructuring of its business.

The beauty giant, which owns MAC Cosmetics and Clinique, first announced its ‘Profit Recovery and Growth Plan’ (PGRP) in November 2023 to boost flagging sales.

The pre-tax cost of this restructuring programme was estimated in February 2024 to be between US$500m and $700m.

After expanding the PRGP in February this year, ELC said it expected restructuring costs to be between $1.2bn and $1.6bn.

In a fresh financial update, ELC has now put a figure on how much it has spent so far: $1.14bn.

This includes new efforts since 26 October that were not previously detailed in its most recent quarterly financial update on 30 October.

The new cost-cutting measures include consolidating some of its service providers, expanding outsourced services, as well as redesigning and standardising its “related end-to-end business processes, leveraging advanced technology to improve productivity”.

“These actions will primarily result in other charges, including professional services related to the design, implementation and execution of the initiative,” ELC said in the financial statement.

“These charges include transition and transformation support, process design and costs to support the global project management office for this initiative. 

“These actions will also result in employee severance through a net reduction in workforce and contract termination charges.”

Of the $1.14bn, restructuring costs as well as charges related to them for the period from 26 October to 29 November were $285m, the company said.

Of this amount, $75m went on employee-related costs and $22m on contract terminations.

All parts of the PRGP are expected to be approved by the end of fiscal 2026 and “substantially completed” by the end of fiscal 2027.

ELC has previously said that job cuts as part of the plan are expected to number 7,000.

Related content:

See more

You may also like

Fragrance

Estée Lauder Companies invests in Mexican luxury fragrance brand XINÚ

Read more
The beauty giant has made a minority investment in XINÚ via its corporate venture capital arm, New Incubation Ventures. This is the first time ELC has invested in a Latin American brand

Trending Articles

  1. Cyril Chapuy on L’Oréal Luxe’s special sauce and growth potential in fragrances The President of L’Oréal Luxe spoke about the division’s stellar growth, future opportunities in luxury fragrance and its ‘aggressive’ acquisition nature in the group’s ‘Let’s Talk Beauty’ webcast
  2. KMI Brands CEO leaves after 16 years Rachel Parsonage, who led KMI Brands’ Noughty and Ted Baker London for 16 years, has now left the business. Parsonage hands over the reins to Lisa Stone, who steps into the role of Managing Director
  3. You need to be a subscriber to read this article.
    Click here to find out more.
    Cosmetics Business picks: 12 new for November beauty product launches New beauty launches from November include fragrance from Billie Eilish, musk-scented collections from Kayali, a collaboration with Cherry LA and serious skin care from Revision, Vita Vitae and PCA Skin
  4. You need to be a subscriber to read this article.
    Click here to find out more.
    Gen Zalpha's most loved beauty brands revealed – and it's not Rare Beauty Just two beauty brands made the PION100 list of most influential brands among younger generations, indicating fragmented loyalty in the category

Upcoming event

Hair Care Trends 2026: Innovations for the Next Generation of Hair Health

4 and 11 December 2025 | Virtual See all

You may also like

Fragrance

Estée Lauder Companies invests in Mexican luxury fragrance brand XINÚ

The beauty giant has made a minority investment in XINÚ via its corporate venture capital arm, New Incubation Ventures. This is the first time ELC has invested in a Latin American brand
You need to be a subscriber to read this article.
Click here to find out more.
Colour Cosmetics

Nostalgia is the real winner of 2025 as discontinued beauty products make a comeback

In the year of cosmetics comebacks, with the likes of Kylie Cosmetics, Kayali, The Ordinary and Lancôme all pulling products from the vault, Cosmetics Business explores why consumers are craving a side of nostalgia with their beauty servings
You need to be a subscriber to read this article.
Click here to find out more.
Colour Cosmetics

Cosmetics Business picks 9 new beauty launches – from celeb skin care to maximalist make-up

This week’s biggest beauty launches include a birthday surprise from model Hailey Bieber’s Rhode, plus new skin care from singer Dua Lipa and luxury player Augustinus Bader
Finance

Leonard Lauder’s family to sell $1 billion worth of Estée Lauder Companies shares

The heir of founder Estée and Joseph Lauder died in June, and cash raised from the sale will be used by his descendants to settle his estate
You need to be a subscriber to read this article.
Click here to find out more.
Skin Care

Estée Lauder’s product placement in Netflix’s Nobody Wants This faces social media backlash

The Netflix romcom series, starring actress Kristen Bell, has come under fire by social media users for feeling like “one giant ad” in reference to product placement partnerships with Estée Lauder and more
Finance

Estée Lauder Companies’ Q1 sales beat estimates as turnaround takes hold in ‘pivotal year’

Stéphane de La Faverie, President and CEO of the Estée Lauder Companies (ELC), hailed a strong start to the year as his ‘Beauty Reimagined’ strategy begins to bear fruit
Colour Cosmetics

Estée Lauder Companies partners with Shopify to elevate customer experience

The cosmetics giant, which owns Jo Malone London and MAC Cosmetics, is teaming up with the e-commerce platform as part of a new strategic partnership to modernise omnichannel shopping experiences
Subscribe now