Beauty retailer Coty has announced plans to lay off 700 employees as part of its restructuring effort according to a company statement.
The cosmetics retailer plans to implement a new business strategy to adapt to the changing economic environment, which includes consolidating operations and streamlining the leadership organization structure.
Sue Nabi, CEO of Coty, said, “We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth.”
“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.”
“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.”
Additionally, Coty plans to prioritize deploying new technology and information and optimize functions across different markets.
The news comes on the heels of a strong financial performance, with the beauty giant reporting savings of over $700 million between fiscal 2021 and 2024.
Coty expects the new program to generate fixed cost savings of around $80 million before taxes in the upcoming fiscal year 2026.
It joins a list of retailers downsizing due to a changing macroeconomic environment.
Founded in 1904, the beauty brand operates a portfolio of over 40 brands globally, previously including Sknn which was acquired by Skims in March.
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