Esteee Lauder will carry out mass layoffs. The situation will affect up to 3.8 thousand. employees
Estée Lauder has confirmed that it has reduced 3,200 jobs and the next 3800 are at risk. The restructuring of the American cosmetic giant is gaining pace after a sharp decline in sales.
Mass exemptions at Estée Lauder emphasize the growing pressure with which global manufacturers of luxury cosmetics struggle, in the face of, among others decrease in sales in duty -free zones and unstable demand for Chinese consumers – writes Globalcosmeticsnews.com.
Estée Lauder announced in February that he intends to liquidate up to 7,000 jobs around the world, which is more than twice the original plan. This is to save $ 1 billion. annually and simplifying the global structure of the company.
Estée Lauder releases employees. Luxury cosmetics have ceased to sell?
This decision coincided with 8 % A decrease in net sales in the financial year ended on June 30, 2025. Revenues fell in all geographical regions – writes Heindustry.beauty.
In North and South America, sales fell by 3 percent. up to $ 4.41 billion, in the region of Europe, the Middle East and Africa – by 13 percent up to $ 5.38 billion, in the region of Asia and the Pacific by 7 %, to $ 4.54 billion.
The total loss of the company was $ 785 million. In the fourth quarter alone, organic net sales fell by 13 %, and perfumes were the only category that recorded growth.
Giant's exemptions. Perfumes did not save sales
The skin care industry suffered the most, whose sales fell by 17 %, mainly thanks to Estée Lauder and La Mer. The sale of cosmetics decreased by 12 percent. Due to the decrease in sales in Mac and Too Faced, and the sale of hair cosmetics dropped by 15 percent. In turn, the sale of perfumes increased by 2 percent, driven by Le Labo, Jo Malone London and the premiere of Balmain Beauty.
Customs adversities during Trump's administration are still a burden, and the management warns that US trade policy may reduce profit for 2026 by around $ 100 million.
Source: heindustry.beauty, globalcosmeticsnews.com
