European Investor
02 Dec 2025, 16:44
Estée Lauder Companies filed an amended Form 8-K detailing new initiatives approved under its expanded Profit Recovery and Growth Plan (PRGP), a restructuring program launched in 2024 and broadened in early 2025. The company now estimates total restructuring and related charges of $1.2 billion to $1.6 billion before tax, with cumulative approved charges reaching $1.137 billion as of November 29, 2025.
Recent approvals focus on transforming global Enterprise Business Services, including consolidating service providers, expanding outsourcing, standardizing processes, and adopting advanced technology. These actions will lead to professional services costs, workforce reductions, and contract termination charges.
Of the cumulative $1.137 billion approved to date, $781 million relates to restructuring charges—including $674 million in employee-related costs—while $342 million reflects other charges. The company expects initiatives to be approved through fiscal 2026 and substantially completed by fiscal 2027.
Estée Lauder will continue providing disclosures as additional significant initiatives are approved.
Recent approvals focus on transforming global Enterprise Business Services, including consolidating service providers, expanding outsourcing, standardizing processes, and adopting advanced technology. These actions will lead to professional services costs, workforce reductions, and contract termination charges.
Of the cumulative $1.137 billion approved to date, $781 million relates to restructuring charges—including $674 million in employee-related costs—while $342 million reflects other charges. The company expects initiatives to be approved through fiscal 2026 and substantially completed by fiscal 2027.
Estée Lauder will continue providing disclosures as additional significant initiatives are approved.
