Estee Lauder laying off at least 3% of staff, part of restructuring

Estee Lauder plans to reduce the size of its total workforce by approximately three to five per cent.

What’s happening at Estee Lauder?

In its Q2 2024 earnings release, the cosmetics company said the job cuts are part of a restructuring program that will begin in its third fiscal quarter.

“Specific initiatives under this restructuring program are expected to be substantially completed by the end of fiscal 2026,” the release reads.

“The restructuring program’s main focus includes the reorganization and rightsizing of certain areas of the [company] as well as simplification and acceleration of processes.”

In addition to eliminating positions, Estee Lauder said it will retrain and redeploy certain staff members.

“Once fully implemented, [we expect] to take restructuring and other charges of between $500 million and $700 million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs, and other costs associated with implementing these initiatives.”

The company claims on its website that it employs more than 60,000 people worldwide.

Impact on Canadian staff

It remains unclear if any Canadian employees will be affected by Estee Lauder’s restructuring program.

According to the company’s LinkedIn page, it has more than 1,600 workers in the country.

Termination agreements for Estee Lauder employees

In Canada, non-unionized employees at Estee Lauder are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements during a recession

Major layoffs continue

The planned reduction at Estee Lauder comes amid a flurry of layoffs in 2024.

Big names, including Amazon, Snap, Zoom, Enbridge, PayPal, UPS, Deutsche Bank, Microsoft, Rona, eBay, Wayfair, and YouTube, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• MEC laying off staff amid restructuring: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.