Estee Lauder Companies (ELC) announced how much it has spent on its major business restructuring plan, its ‘Profit Recovery and Growth Plan’ (PGRP).

ELC first announced the PGRP in November 2023, intending to boost sales.

This past February, ELC expanded its PRGP, expecting restructuring costs to be between $1.2 billion and $1.6 billion.

In a recent financial update, ELC has estimated $1.14 billion has been spent on restructuring the business. 

This estimate includes new efforts that were not included in its recent quarterly financial update. 

ELC issued new cost-cutting measures, such as consolidating service providers, expanding outsourced services, as well as redesigning and standardizing its “related end-to-end business processes.”

In a financial statement, ELC commented,

“These actions will primarily result in other charges, including professional services related to the design, implementation, and execution of the initiative. These charges include transition and transformation support, process design, and costs to support the global project management office for this initiative. These actions will also result in employee severance through a net reduction in workforce and contract termination charges.”

All parts of the PRGP are expected to be approved by the end of fiscal 2026 and “substantially completed” by the end of fiscal 2027.

Read Next

ELC’s Voice-Enabled Makeup Assistant Wins World 50 Impact Innovation Award 2025

ELC Invests in Mexican Fragrance Brand Xinú