Coty is set to slash 700 jobs globally in the latest stage of its ‘transformational’ overhaul.
The US beauty giant did not specify which positions will be affected, but stated it will follow “all necessary regulations” for impacted staff.
Coty announced the news on 24 April via its website as an update on its latest cost-cutting measures.
It forms part of Coty’s ‘All-in to Win’ programme, which was announced in 2020 during the height of the Covid-19 pandemic to streamline operations and improve profitability.
The next stage of this strategic overhaul, expected to begin during the first half of 2027, will also see the owner of Kylie Cosmetics pay a one-time cash cost of US$80m.
Despite the financial hit and job cuts, Coty said it anticipates annual fixed cost savings of $130m before taxes, including an estimated $80m in 2026 and $50m in 2027.
The company’s productivity programme will also continue in 2025 and is anticipated to improve savings by $120m across its supply chain and procurement.
"We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth,” said Coty CEO Sue Nabi.
“When we first announced our ‘All-in to Win’ programme in FY20, at the peak of Covid-19 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 stage of the transformational scheme is centred around four key business pillars.
This includes streamlining the organisational structure across Coty’s key operating markets to “unlock operational efficiencies and reduce duplication”.
It will also see a consolidation and centralisation of the company’s support function activities to better align with the new regional structures.
Coty, additionally, is seeking to boost its innovation impact by streamlining and focusing resources on fewer but more impactful initiatives.
Finally, a general optimisation in terms in terms of spend aims to structurally reduce “non-people fixed costs” across all major areas of the business.
Nabi added: “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.
“This next phase of our transformation programme 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.”
The job cut announcement follows UK beauty giant Unilever revealing it slashed an estimated 6,000 roles in Q1 2025 as part of its own global restructuring plans.
The consumer giant’s business will see more than 7,500 jobs cut as part of the scheme.
Unilever expects around €550m in savings by the end of 2025 as a result of the programme that aims to streamline the business and improve its category-focused operating model.
Estée Lauder Companies (ELC) is also expected to cut an estimated 7,000 staff roles by the end of fiscal 2026.