EL · 8-K · 20260819PR000038

Strategic Cost Reduction

ESTEE LAUDER COMPANIES INC · 2026-08-19 · Importance 64 · Surprise 42 · In source text

The Profit Recovery and Growth Plan (PRGP) is expected to deliver approximately $1.2 billion in annual gross benefits, before taxes, to help restore operating margin, offset inflation, and fund consumer-facing reinvestment. The company estimates a final net reduction of approximately 10,000 positions and cumulative restructuring and other charges slightly above the previously announced high end of $1.5 billion to $1.7 billion. The plan includes rightsizing and reorganizing areas, process simplification, outsourcing select services, and changes to go-to-market footprint and selling models. Actions are expected to be substantially completed in fiscal 2027, with the vast majority of full run-rate benefits expected in that year.

Key facts

• The PRGP restructuring program is expected to deliver $1.2 billion in total gross benefits, at the high end of the previously communicated range. source
• The PRGP restructuring program is expected to yield approximately $1.2 billion in annual gross benefits before taxes. source
• The PRGP restructuring program is expected to increase productivity by 50% across corporate-function employees. source
• The Company expects PRGP actions to be substantially completed in fiscal 2027, with the vast majority of full run-rate benefits realized during fiscal 2027. source

Impact estimates