Coty starts a restructuring. The American giant begins a new stage of its All-in to Win strategic plan to optimize resources, accelerate processes and strengthen margins. Coty plans to cut at least 700 jobs over the next two years, as part of an internal reorganization to save up to 500 million dollars before 2028.
This progress responds to the strategic plan that Sue Nabi assumed at the beginning of her career as CEO of the group. At that time, the company started a comprehensive strategy of cost reduction, streamlining its supply chain and efficient revenue management. In 2020, the objective was then to clean up the accounts, regain competitiveness and free up resources to reinvest in the brand. That phase, as reported by the company, generated 700 million dollars in accumulated savings between the years 2021 to 2024.
Sue Nabi, through a press release, said that "this next chapter will strengthen our operating model and simplify our cost structure, positioning us to outperform the market and expand our margins in a sustained manner. The beauty industry has changed radically in a few years: the rise of e-commerce, the concentration of channels and new ways of discovering brands demand that we evolve again".
This new plan launches a reorganization of the operational structure, with special attention to regional markets and seeks to simplify territorial management to adapt to the current context of points of sale and concentration of operators.
As Modaes explains, Coty seeks to strengthen part of its support functions such as demand planning in a single operations center driven by artificial intelligence technologies. In addition, the company has announced that it will reduce the number of launches, prioritizing key initiatives that concentrate resources and have the potential for sustained growth. The company expects that this new program will generate 130 million dollars annually in structural savings, of which 80 million will materialize in fiscal year 2026 and another 50 million in 2027.