The hires, layoffs, and launches key to retail’s recent turnaround efforts

Facing slumping sales, many retailers and CPGs are on the comeback trail—so much so that it’s become a competition of who can create the snappiest turnaround tagline. We’re tracking the hirings, firings, expansions, and coffee concoctions that’ve been core to recent revitalization efforts.

Nestlé

Nestlé said last week it’s axing 16,000 jobs, or about 6% of its workforce, over the next two years to contribute to cost savings as part of its “Fuel for Growth” turnaround initiative, as the world’s largest food company faces declining sales.

“We want to accelerate the transformation of the company,” CEO Philipp Navratil said on the company’s third quarter earnings call. “So we want to become a company that works faster, that is more agile, that is bolder in its decision-making.”

Navratil also said the company will be performing a portfolio review with an “open mind.”

It’s the first major move for the food giant under Navratil, the Nespresso leader who replaced Laurent Freixe last month after an investigation found Freixe had engaged in an undisclosed romantic relationship with a subordinate. Last November, then-CEO Friexe—who had just taken the reins from Mark Schneider after a series of underwhelming sales quarters— announced Nestlé’s turnaround plan, which included increasing its marketing and advertising budget.

Ulta Beauty

As the beauty retailer faces increasing competition, Ulta Beauty President and CEO Kecia Steelman unveiled “Ulta Beauty Unleashed,” a multipronged turnaround plan that included marketing, merchandising, and expansion efforts in March.

Last week, Ulta debuted its third-party UB Marketplace, an effort to more quickly grow its e-commerce assortment. It’s already received consumer backlash and confusion, with posts on Reddit complaining that it has cluttered the new arrivals section with products (like protein powder) outside its typical offerings.

Starbucks

With his “Back to Starbucks” effort, CEO Brian Niccol has been promising to “get back to what makes Starbucks Starbucks,” since he left Chipotle to lead the coffee chain last year. Late last month, Niccol announced the company was axing 900 corporate jobs (in addition to the 1,100 it cut in February) and closing of hundreds of Starbucks locations, including some in its hometown of Seattle.

Days after the sweeping announcement, Starbucks debuted protein-infused coffee drinks in another effort to boost sales.

The Estée Lauder Companies

Facing slumping sales, the beauty giant brought on new President and CEO Stéphane de La Faverie in January, and he announced the “Beauty Reimagined” strategy—which included job cuts—the following month. In August, de La Faverie said on an earnings call that the company is entering its new fiscal year “with signs of momentum and the start of our turnaround,” though sales are still struggling.

As part of a portfolio review, the company is reportedly looking to offload its Too Faced brand, per Axios. While color cosmetics struggle, the company sees fragrance—a beauty highlight across mass and prestige—as a core focus of its turnaround, opening a new fragrance innovation center in Paris this month.

Nike

Nike is showing some signs of improvement since CEO Elliott Hill took the reins last year and implemented a “Win Now” strategy. Still, Hill told CNBC a turnaround will “take a while.” While its profits fell, the company’s North American sales rose 4% in the most recent quarter, it reported earlier this month.

The highly anticipated NikeSKIMS line, a collaboration with Kim Kardashian’s shapewear brand, finally debuted in September as the sportswear giant doubles down on its women’s business.

Gap

Gap has been working to regain cultural relevance since it brought on former Mattel President and COO Richard Dickson as its CEO in 2023. Recent wins in the effort include its viral ad starring girl group Katseye, and a Zac Posen-designed handbag line at Old Navy. An expansion into beauty and accessories is on the way, with a number of new hires tapped to lead the push.