Estée Lauder Companies Announces $1.14 Billion in Restructuring Charges

Estée Lauder's restructuring costs have reached $1.14 billion due to layoffs and business consolidation.

In a new filing with the U.S. Securities and Exchange Commission (SEC), the group confirmed that it has set aside an additional $285 million since late October to streamline its operations, including consolidating service providers and standardizing business processes. This multi-year plan builds on a previous plan to lay off up to 7,000 employees; as of May, more than 2,600 positions had been eliminated. The company recently returned to profitability in its first fiscal quarter, with management attributing some of the gains to these restructuring measures.

The rising restructuring costs reflect the pressure on global beauty groups to radically reform their operations and rebuild competitiveness, particularly in the challenging Asian market.