NEW YORK, Thekabarnews.com—Estée Lauder Companies Inc. said it would cut another 3,000 jobs worldwide. The luxury cosmetics giant is accelerating a major corporate restructuring program to improve efficiency and long-term profitability.

The company, parent of major beauty brands including Clinique and M.A.C. Cosmetics, also raised its full-year profit forecast, a vote of confidence in its strategic transformation despite large-scale workforce cuts.

The firm, which is also said to be in merger talks with Jean Paul Gaultier owner Puig, now expects to cut between 9,000 and 10,000 jobs in total.

The figure is well above the earlier projection of up to 7,000 job cuts. The company also expects total cost savings of as much as $1.2 billion from the restructuring.

On figures in the company’s most recent annual report, that would be about 17.5% of its total workforce. As of June 30, 2025, the company will have approximately 57,000 employees worldwide.

The broader layoffs could be a sign of more fundamental changes related to a possible merger.

The rise in planned layoffs could be a sign that Estée Lauder might be able to pare down more roles on its end. In addition, its merger plans could allow it to retain Puig workers, Sky Canaves, an eMarketer analyst, told Reuters on Monday, May 4.

More than 70 percent of the additional layoffs will be in department stores.

It’s part of a bigger recovery strategy to move away from slower traditional retail channels. The company is shifting to faster-growing digital platforms and specialty beauty retailers.

Estée Lauder will step up its efforts to build stronger partnerships with key retail channels. These include Ulta Beauty, Sephora, Amazon, and TikTok Shop.

The company sees these platforms as an important part of reviving sales momentum. This is especially true for younger consumers, who increasingly make beauty purchases online and are influenced by influencer-led buying behavior.

Luxury beauty brands are under increasing pressure from changing consumer behaviors and inflation-led spending caution. Furthermore, there is rising competition from premium and fast-growing independent beauty brands.

With an increasingly competitive global marketplace, Estée Lauder aims to return to growth while protecting profit margins. The company wants to do this through streamlining operations and taking a digital-first approach to retail.

The company’s move is part of a broader trend among consumer brands worldwide. Companies are moving away from relying on traditional department stores to invest heavily in e-commerce, social commerce, and direct-to-consumer channels.

The company says the restructuring, though painful now, is necessary for Estée Lauder to remain competitive in the long run. This is vital in the global beauty business.

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