Coty to cut 700 jobs as part of business overhaul
Infiniment Coty Paris Credits: Infiniment Coty Paris Beauty giant Coty has confirmed that the next phase of its ongoing transformation programme will impact approximately 700 positions as it looks to continue simplifying its fixed cost structure. The exact roles affected were not disclosed in the press release. The initiative builds on the company’s long-running ‘All-in to Win’ programme, first introduced in FY20 initially as part of efforts to support brand reinvestment and boost its margin profile via a “significantly lower fixed cost structure”, among other shifts, CEO of Coty, Sue Nabi, said. So far, the plan has generated over 700 million dollars in savings between FY21 and FY24. However, as the beauty industry continues to evolve, “Coty must once again adapt”, Nabi noted. “This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. We fully anticipate these changes will strongly position Coty to outperform the beauty market in the coming years, cementing our global leadership position in fragrances while expanding into certain growing and profitable beauty categories, all while steadily expanding our gross margins and EBITDA margins,” her statement continued. Among the plans for the next phase, Coty is aiming to streamline its organisational structure across key markets, centralise support function activities to better align with new regional structures and identify key launch priorities early on. Ultimately, the company is hoping to generate annual fixed cost savings of around 130 million dollars before taxes, spread over FY26 and FY27. It also confirmed it was on track to achieve its original savings target of 120 million dollars in FY25 through its productivity programme.
Beauty giant Coty has confirmed that the next phase of its ongoing transformation programme will impact approximately 700 positions as it looks to continue simplifying its fixed cost structure. The exact roles affected were not disclosed in the press release.
The initiative builds on the company’s long-running ‘All-in to Win’ programme, first introduced in FY20 initially as part of efforts to support brand reinvestment and boost its margin profile via a “significantly lower fixed cost structure”, among other shifts, CEO of Coty, Sue Nabi, said.
So far, the plan has generated over 700 million dollars in savings between FY21 and FY24. However, as the beauty industry continues to evolve, “Coty must once again adapt”, Nabi noted.
“This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. We fully anticipate these changes will strongly position Coty to outperform the beauty market in the coming years, cementing our global leadership position in fragrances while expanding into certain growing and profitable beauty categories, all while steadily expanding our gross margins and EBITDA margins,” her statement continued.
Among the plans for the next phase, Coty is aiming to streamline its organisational structure across key markets, centralise support function activities to better align with new regional structures and identify key launch priorities early on.
Ultimately, the company is hoping to generate annual fixed cost savings of around 130 million dollars before taxes, spread over FY26 and FY27. It also confirmed it was on track to achieve its original savings target of 120 million dollars in FY25 through its productivity programme.
