In 2023, the conglomerate partnered with holographic collaboration platform Spatial on the launch of “Coty Campus,” an internal metaverse for its global employees. Image credit: Coty
U.S. beauty group Coty is implementing the next phase of its ongoing transformation program, “All-in to Win.”
As part of the multiyear initiative, the company is making cuts to its workforce to increase operational efficiencies to the tune of 700 positions globally. Coty announced the cuts on April 24.
“With the cyclical and structural changes in the beauty industry and the global economy in recent years, including the rapid acceleration of ecommerce, the consolidation of retail channels and customers, and the new ways of consumer brand discovery, Coty must once again adapt and evolve,” said Sue Nabi, CEO of Coty, in a statement.
“This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure,” Ms. Nabi said. “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 business of beauty
Thus far, Coty has managed to beat the luxury beauty sales slump (see story). Today, the business is solving for market challenges, a statement sharing that the latest phase of its “All-in to Win” strategy aims to establish a simplified and scaled operating model, reduce complexity across functions and markets and sharpen focus on top innovation and market priorities.
Coty expects to generate nearly $500 million in fixed cost and productivity savings between fiscal 2025 and fiscal 2027.
Coty announced the cuts on April 24. Image credit: Coty
“We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth,” said Ms. Nabi, in a statement.
“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,” she said. “The successful implementation of our plans despite the very challenged macro backdrop generated over $700M of savings between FY21-FY24.”