Estée Lauder Raises Forecast, Cuts Jobs
Analysis based on 9 articles · First reported May 01, 2026 · Last updated May 01, 2026
Estée Lauder Companies' shares rose significantly due to its raised profit forecast and accelerated restructuring plan, which includes substantial job cuts. The company's strategic shift towards digital and specialty retail channels, along with potential merger synergies with Puig, is viewed positively by the market, despite ongoing geopolitical challenges like the Iran war affecting luxury sales.
Estée Lauder Companies announced an increase in its annual profit forecast and plans to cut an additional 3,000 jobs globally, bringing the total reduction to between 9,000 and 10,000 positions. This restructuring aims to save up to $1.2 billion in annual costs and is part of CEO Stéphane de La Faverie's 'Beauty Reimagined' strategy. The company is shifting its focus from department stores to faster-growing digital and specialty retail channels such as Ulta Beauty, LVMH — Sephora, Amazon (company), and ByteDance — TikTok Shop Shop. Estée Lauder Companies is also in talks to merge with Puig to strengthen its fragrances business. The company's sales have been impacted by the Iran war, which has affected luxury markets in the Middle East, a sentiment echoed by LVMH.
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