Coty cuts 700 jobs worldwide

Behind the apparent economic rationality, Coty was about to provoke a social earthquake. The beauty giant launches a new phase of its “All-in to Win” strategic plan, with a clear ambition: $500 million in savings over the next two years. A brutal turnaround that will sacrifice 700 jobs.

A massive plan for a company in transformation

Since 2021, Coty has been rolling out its internal overhaul strategy under the aegis of Group CEO Sue Nabi. Initial objective: to lighten the fixed cost structure, reinvest in innovation and strengthen margins. Between 2021 and 2024, the plan will save $700 million and significantly improve profitability.

But with results up +13% on a like-for-like basis, Coty is revving up the machine: a new phase of rationalization will begin in the first half of fiscal 2027, with a target of 500 million additional savings.

700 job cuts, support functions targeted

The main lines of this restructuring? Centralization of support functions, organizational simplification in key markets, and reduction of administrative expenses. All subsidiaries – including those of prestigious brands such as Gucci, Burberry and Chloé – will be affected.

But the human cost is high: 700 jobs cut worldwide. This decision comes at a time when Coty, despite a decent performance in the luxury segment (+2%), posted a -1% decline in net sales in the first half of the 2024-2025 financial year.

A double-edged strategy

While the company is aiming for a “stronger, more resilient” model, this repositioning raises questions. For behind the financial objectives, it is team confidence and internal cohesion that could falter. At a time of market instability, Coty seems to be prioritizing margin over human capital.

By achieving $1.2 billion in cumulative savings since 2021, Coty is impressing with the rigor of its execution. But at what price?

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