The Estée Lauder Companies Inc. has announced WPP as its first ever global media partner, completing the full establishment of its One ELC operating model and marking a significant milestone in its Profit Recovery and Growth Plan (PRGP). As of March 31, 2026, the company has approved initiatives expected to deliver total gross benefits at the high end of its $0.8 billion to $1.0 billion targeted savings range, with the vast majority of full run rate benefits expected to be realized in fiscal 2027.
What One ELC Actually Means
The One ELC operating model is built around three interlocking elements deployed over the past year. One Team, launched in July 2025, simplified the organization with fewer layers, clearer ownership, and faster decision making. One Culture, introduced in February 2026, embedded accountability and entrepreneurial thinking into daily ways of working. One Operating Ecosystem, now fully in place, brings together shared platforms, data, and strategic partners to enable consistent, scalable execution across all brands, regions, and functions. Together, they represent a fundamental shift away from the fragmented, brand by brand operating structure that ELC ran for decades.
Three Strategic Partners Power the Ecosystem
The One Operating Ecosystem is anchored by three best in class partners, each covering a distinct function:
- WPP as global media partner, replacing a decentralized regional media structure with a connected, AI enabled system built on data, technology, and precision investment at a global scale
- Accenture, transforming shared services through the company’s Enterprise Business Services (EBS) model, is on track to be fully in place before the end of calendar year 2026
- Shopify, powering the global DTC omnichannel commerce experience, with initial implementation via TOM FORD BEAUTY‘s brand.com in the US already delivering improved sales, conversion, and average order value, with 50% of in scope DTC business expected to launch by the end of calendar year 2026
Leadership on the Transformation
Stéphane de La Faverie, President and CEO of The Estée Lauder Companies, said, “With the appointment of WPP as our first ever global media partner, our One ELC operating model is now fully established. This more unified and scalable system will enable us to be faster, more agile and efficient, and support unlocking additional growth.” Aude Gandon, Chief Digital and Marketing Officer, said, “We are building a connected, AI enabled media system that brings brand building and performance together at global scale. Partnering with WPP strengthens our ability to invest with greater precision, move with greater speed, and deliver stronger, more measurable returns.”
PRGP Progress and What Comes Next
The Restructuring Program has delivered decisive cost discipline throughout the organization. Total expected charges are at the mid point of the $1.2 billion to $1.6 billion estimated range, with all business case approvals still expected by June 30, 2026, and execution substantially complete by the end of fiscal 2027. The savings unlocked by the PRGP are being partially reinvested into consumer facing initiatives to restore sustainable sales growth, a strategic choice that reflects de La Faverie‘s confidence that the cost restructuring has created the headroom to invest for the next growth phase.
