Coty announced on Thursday that it would cut around 700 jobs across the globe as part of an enhanced cost-cutting initiative, which would represent around 5 percent of its total workforce.
In an internal email viewed by The Business of Beauty, Coty’s chief executive Sue Nabi highlighted tariff regulations, a new geopolitical landscape and shifting consumer behaviour as factors impacting the decision. According to the email, the job cuts will begin to be implemented in the next few months.
Coty makes mass cosmetics lines such as Max Factor, Sally Hansen and Kylie Jenner’s Kylie Cosmetics line, as well as a number of prestige fragrance licenses including Jil Sander, Gucci and Burberry. In March, it sold Skkn by Kim, the skincare line founded by Kim Kardashian, back to Kardashian and her Skims shapewear company.
In a public statement about the initiative, Coty’s chief executive Sue Nabi said the extension of its “All-in to Win” plan announced in 2020 would build a stronger and more resilient business. The company is targeting a further $130 million in fixed cost savings, and around $240 million in ongoing productivity savings over the next two years.
The plan also includes organisational overhauls in its regional offices which it says will allow for faster decision-making and execution, an AI-powered demand planning system and improving its innovation pipeline. In the statement, the company said the original plan, which began in 2021, had been successful, with around $700 million saved so far.
Coty’s stock has dropped around 35 percent in the last six months, as the company missed quarterly estimates in February, and in November, said its annual profit would be at the lower end of its forecast as demand for mass beauty products in key markets like the U.S and Australia would offset its gains in the fragrance segment.
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