Coty announced on Thursday that it will restructure in key markets as part of the next phase of its “All-in to Win” transformation program, a move expected to impact approximately 700 positions.
Coty to cut 700 jobs in transformation push. – Coty
The global beauty giant, which owns a portfolio of major brands across fragrance, cosmetics, and skincare, is aiming to simplify and scale its operating model, reduce complexity, and sharpen its focus on top innovation and market priorities.
The strategic initiative builds on the company’s efforts launched in fiscal year 2020 at the height of the Covid-19 pandemic, which successfully delivered over $700 million in savings from FY21 to FY24, alongside major gains in gross margin, brand investment, and EBITDA.
“We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth,” said Sue Nabi, CEO of Coty.
“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.”
The company also plans to enhance the impact of its innovation pipeline by identifying launch priorities earlier and focusing resources on fewer, more significant initiatives. Additionally, Coty will structurally reduce non-people fixed costs across all areas of spending.
The initiative is projected to generate approximately $130 million in annual fixed cost savings before taxes, including about $80 million in FY26 and $50 million in FY27. Coty expects one-time cash costs of around $80 million for the program, split evenly between FY26 and FY27.
Coty will also maintain its existing productivity program, targeting $120 million in savings in FY25, primarily through improvements in supply chain and procurement.
Together, the new fixed cost reduction measures and ongoing productivity initiatives are expected to yield nearly $500 million in savings from FY25 through FY27.
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