Financial News

Coty To Slash 700 Jobs

The ‘All-in to Win’ program is expected to generate annual fixed cost savings of approximately $130 million before taxes, including approximately $80 million in FY26 and approximately $50 million in FY27.

Author Image

By: Lianna Albrizio

Associate Editor

Coty, Inc. is full steam ahead with its next phase of its “All-in to Win” program. The strategic initiative, officials said, will establish a simplified and scaled operating model, reduce complexity across functions and markets and sharpen its focus on top innovation and market priorities.

The program calls for eliminating 700 jobs. In Coty’s fiscal second quarter ending December 31, 2024, overall net revenue declined 3% to $1.66 billion. In following the 2020 “All-in to Win” program, Coty hopes to increase cost savings. 

“We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth,” said CEO Sue Nabi. “When we first announced our All-in to Win Program in FY20, at the peak of Covid disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives. The successful implementation of our plans – despite the very challenged macro backdrop – generated over $700 million of savings between FY21-FY24, with over 400 basis points of gross margin expansion, over 400 basis point of A&CP investment expansion, and 130 basis points of EBITDA margin expansion, all while delivering a very strong revenue CAGR of 13% LFL. With the cyclical and structural changes in the beauty industry and the global economy in recent years, including the rapid acceleration of e-commerce, the consolidation of retail channels and customers, and the new ways of consumer brand discovery, Coty must once again adapt and evolve.”

She added the company’s next phase of the program will further strengthen its operating model and simplify its fixed cost structure. The company anticipates the changes will strongly position Coty to outperform the beauty market in the coming years, cementing its global leadership position in fragrances while expanding into certain growing and profitable beauty categories.

A Streamlined Organization

Coty will streamline the organizational structure across key markets to unlock operational efficiencies, reduce duplication and better align with the consolidation in the local and regional retail landscape. These market organizations will be part of a more scaled and agile regional set-up, with the regional leaders empowered to accelerate decision-making and faster execution, in keeping with the rapid evolution in today’s global beauty markets.

The company will work to consolidate and centralize support function activities, better aligning with the new regional structures. Coty started consolidating demand planning into a single hub, enabled by a state-of-the-art AI-driven demand planning system.

Officials will step-change innovation impact by identifying key launch priorities early in the process, and focus organizational efforts and resources into fewer and more impactful initiatives. These will be supplemented by smaller agile innovations to capture short-term opportunities.

Lastly, the company will structurally reduce non-people fixed costs across all areas of spend.

The new phase of the All-in to Win program will be executed through the first half of FY 2027. The program is expected to generate annual fixed cost savings of approximately $130 million before taxes, including approximately $80 million in FY26 and approximately $50 million in FY27.

The one-time cash costs associated with the program are expected to be approximately $80 million, roughly evenly split between FY26 and FY27. Coty estimates this initiative to impact approximately 700 positions, following all necessary regulations.

Coty will continue its ongoing productivity program, with FY25 savings on track with its original target of approximately $120 million across the P&L, and is committed to the same targeted productivity savings for FY26 and beyond, primarily in supply chain and procurement.

The combination of the fixed cost savings program and ongoing productivity savings is expected to deliver close to $500 million of savings between FY25-FY27.

Keep Up With Our Content. Subscribe To Happi Newsletters