On April 23, Coty Inc., the U.S. beauty giant known for brands such as CoverGirl and Kylie Cosmetics, announced plans to cut up to 700 positions globally. The measure marks the latest phase of Coty’s “All-in to Win” transformation program, originally launched during the height of the COVID-19 pandemic in 2020.
According to the announcement, the company did not specify which positions would be affected, but stated that it would “comply with all necessary regulations” in dealing with impacted employees. The company expects to incur a one-time cash cost of approximately $80 million, with the program set to begin in earnest in the first half of 2027.
Coty also anticipates annual fixed cost savings of approximately $130 million as a result of the initiative, including about $80 million in 2026 and $50 million in 2027.
In addition, the company aims to achieve a further $120 million in cost savings in 2025 through supply chain and procurement optimization.
Sue Nabi, Chief Executive Officer (CEO) of Coty, commented in a statement: “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.”
The latest phase of the transformation is structured around four key pillars: First, maximizing operational efficiency by streamlining the organizational structure across key markets. Second, consolidating and centralizing support functions in alignment with the new regional structure. Third, strengthening the impact of innovation by concentrating resources on fewer, more impactful initiatives. Fourth, structurally reducing non-people fixed costs across the company.
Nabi further touched on recent changes in the beauty industry and the global economy: “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 concluded: “This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. 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.”
Meanwhile, the beauty industry is witnessing similar trends. Unilever has announced plans to cut more than 7,500 jobs by the end of 2025, and Estée Lauder Companies is also expected to eliminate around 7,000 positions by the end of fiscal year 2026.
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