01—Abstract
Summary
Summary of the 8-K/A filed December 1, 2025. Cited figures are marked; the original filing is the authoritative source.
The Estée Lauder Companies Inc. filed this Form 8-K/A under Item 2.05 to update investors on its Restructuring Program, which is a component of the Profit Recovery and Growth Plan (PRGP) launched November 1, 2023 to help progressively rebuild profit margins in fiscal years 2025 and 2026.
The Restructuring Program was expanded on February 3, 2025, and now includes reorganization and rightsizing, process simplification and acceleration, outsourcing of select services, and evolution of the go-to-market footprint and selling models. The Company expects total restructuring and other charges for the program of between $1,200 milliona and $1,600 million (before tax), and cumulative initiatives are expected to be approved by the end of fiscal 2026 and substantially completed by the end of fiscal 2027. This filing provides details on initiatives approved after October 26, 2025, primarily an Enterprise Business Services initiative to transform the global operating model through consolidation of service providers, expanded outsourced services, and standardization of business processes.
The Company expects cumulative restructuring and other charges of approximately $1,137 millionb (before tax) for initiatives approved from inception of the program through November 29, 2025, of which $285 million was approved between October 27 and November 29, 2025. Of the $1,137 million cumulative total, $852 million was approved through October 26, 2025 and $781 million of the total is classified as restructuring charges, with $342 million classified as other charges.
The Company states that, apart from non-cash charges, these actions are expected to result in future cash expenditures funded from cash provided by operations. The Company will file further disclosures for initiatives that individually or collectively become significant, once it can make good faith estimates of amounts by cost type and future cash expenditures.
02—Key points
Key Highlights
- Cumulative charges approved through November 29, 2025 total $1,137 million (before tax), including $781 million of restructuring charges and $342 million of other charges.
- New approvals of $285 million between October 27 and November 29, 2025, comprising $98 million of restructuring charges and $187 million of other charges.
- Operating Expenses account for $781 million of the cumulative $1,137 million; Cost of Sales $10 million and Sales Returns (in Net Sales) $4 million.
- Restructuring charges by type through November 29, 2025: employee-related costs $674 million, asset-related costs $53 million, contract terminations $26 million, and other exit costs $28 million.
- The Enterprise Business Services initiative will consolidate service providers, expand outsourced services, and standardize end-to-end business processes, with severance from a net workforce reduction and contract termination charges.
- Total expected restructuring and other charges for the Restructuring Program remain between $1,200 million and $1,600 million (before tax), with initiatives to be approved by end of fiscal 2026 and substantially completed by end of fiscal 2027.
- Charges are expected to be funded from cash provided by operations, apart from non-cash charges.
03—Questions
Frequently Asked Questions
What is the total restructuring and other cost expected from this program?
The Company estimates restructuring and other charges for the Restructuring Program will total between $1,200 million and $1,600 million (before tax). Cumulative charges approved through November 29, 2025 total $1,137 million.
What new initiatives were approved after October 26, 2025?
The Company approved an Enterprise Business Services initiative to transform its global operating model through consolidating service providers, expanding outsourced services, and redesigning business processes using technology. Charges from initiatives approved October 27 to November 29, 2025 total $285 million.
How much of the charges are restructuring versus other charges?
Through November 29, 2025, cumulative restructuring charges are $781 million and other charges are $342 million. Of the restructuring charges, $674 million relates to employee-related costs.
When will the Restructuring Program be completed?
Cumulative initiatives are expected to be approved by the end of fiscal 2026 and substantially completed by the end of fiscal 2027.
Will the Company provide more details on future initiatives?
The Company will file additional disclosures for initiatives that individually or collectively are determined to be significant, once it can make good faith estimates of amounts by cost type and future cash expenditures.
04—Continue