Estee Lauder expands restructuring program to $1.75B in charges

The Estée Lauder Companies (NYSE: EL) has disclosed that cumulative restructuring and other charges approved through June 30, 2026 reached approximately $1,748 million before tax, according to a Current Report on Form 8-K/A filed with regulators.

The charges stem from the company's Profit Recovery and Growth Plan, launched in November 2023, which includes a restructuring program first announced in February 2024. The program was later expanded in February 2025, with the expanded component beginning during the company's fiscal 2025 third quarter.

The total $1,748 million in approved charges breaks down as $43 million in sales returns, $15 million in cost of sales, $1,312 million in restructuring charges, and $378 million in other charges. Of the $1,312 million in restructuring charges, $1,044 million relates to employee-related costs, $196 million to asset-related costs, $28 million to contract terminations, and $44 million to other exit costs.

Approvals under the restructuring program concluded as of June 30, 2026. The approved initiatives are expected to be substantially completed by the end of fiscal 2027. Charges other than non-cash items are expected to be funded through cash from operations.

The restructuring program covers four areas: reorganization and rightsizing of certain operations, simplification of processes, outsourcing of select services, and changes to go-to-market and selling models. Recent initiatives approved between May 29 and June 30, 2026 totaled $197 million and include a go-to-market operating model acceleration, digital organization transformation, and enabling function reorganization.

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