The Estée Lauder Companies (ELC) disclosed in an SEC filing that its 'Beauty Reimagined' turnaround costs have risen to approximately $1.75 billion before taxes. This updated estimate includes expenses for employee severance, asset-related costs, and contract terminations.
The restructuring plan involves the elimination of up to 10,000 jobs. These measures aim to streamline operations and shift focus toward high-growth digital channels like Amazon and TikTok.
The company anticipates the initiatives will yield annual gross benefits between $1 billion and $1.2 billion. All actions under the plan are approved and expected to be substantially completed by the end of fiscal 2027.