Estee Lauder Raises Restructuring Charges to $1.75 Billion
Yahoo Finance ·
Estee Lauder Raises Restructuring Charges to $1.75 Billion Khac Phu Nguyen Wed, July 8, 2026 at 3:09 PM EDT 1 min read EL AMZN This article first appeared on GuruFocus . Estee Lauder Companies ( NYSE:EL ), a global cosmetics company, has increased the estimated cost of its restructuring program to as much as $1.75 billion in cumulative charges, up from its previous projection of about $1.55 billion, according to an amended regulatory filing released Tuesday. The additional charges are expected to cover workforce reductions, asset-related costs, contract terminations, and other restructuring expenses as the company continues working to improve efficiency and strengthen its operating performance. The updated estimate suggests the turnaround effort could require higher upfront costs as management pushes ahead with its restructuring plan. Warning! GuruFocus has detected 3 Warning Signs with EL. Is EL fairly valued? Test your thesis with our free DCF calculator. The restructuring comes as Estee Lauder continues reshaping its business following a period of sluggish sales. The company has previously said it plans to eliminate as many as 10,000 jobs while shifting more of its business toward faster-growing sales channels, including Amazon ( NASDAQ:AMZN ) and TikTok shops. At the same time, the company has introduced lower-priced products aimed at younger consumers and is also seeking to exit an office lease, according to the filing. For investors, the higher restructuring estimate could indicate that management remains committed to executing its transformation strategy despite the increased costs. Shares were little changed in extended New York trading following the filing, although the stock had declined 19% this year through Tuesday's close, while the S&P 500 Index ( SPY ) had gained nearly 10% over the same period. Investors may continue watching whether the company's cost-cutting efforts and shift toward faster-growing distribution channels can support an improvement in future operating results.
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