"The company is also leaning on its multi-year restructuring program, 'Beauty Reimagined', to offset part of the blow. The plan, which carries an estimated price tag of $1.2 billion to $1.6 billion, combines sweeping cost cuts with a reorganization of brands and regions and a net reduction of 5,800 to 7,000 jobs, or up to about 11% of the workforce, by 2027."
"The group expects the drag to fall mainly in its fiscal second half and has factored in higher duties in countries including Switzerland, Canada, China, Mexico, the European Union and Japan, where it manufactures and distributes key brands. Management expects the program, together with its 'Profit Recovery and Growth Plan', to deliver annual pre-tax savings of roughly $800 million to $1 billion by trimming non-consumer-facing expenses, consolidating back-office functions and tightening procurement, freeing up funds for marketing, innovation and digital."
Estée Lauder expects new and higher tariffs to reduce annual profits by about $100 million, with the impact concentrated in the fiscal second half. The company has factored higher duties in markets such as Switzerland, Canada, China, Mexico, the European Union and Japan, where it manufactures and distributes key brands. The firm is implementing a multi-year 'Beauty Reimagined' restructuring, costing $1.2–$1.6 billion and targeting 5,800–7,000 job reductions by 2027. Combined with a Profit Recovery and Growth Plan, management forecasts $800 million–$1 billion in annual pre-tax savings through cost cuts, consolidation and procurement improvements. Recent quarterly results showed improved sales, margins and earnings, and the Americas returned to operating profit.
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