Coty Poised to Reshape Its Operating Model in France

by · WWD
From Kylie Cosmetics.Courtesy Lemme, Kylie Cosmetics, Olena Malik/Getty Images

PARIS — Coty Inc. is substantially restructuring its French operations as part of a broader strategic overhaul unveiled last year.

Sparked by a request for comment on an AFP article on the subject Friday, a company spokesperson said: “Coty has proposed to adapt its operating model in France following a review of its business. The proposal is aligned with Coty’s strategy to build a simpler, more focused and more sustainable organization.

“It includes a plan for reshaping the Consumer Beauty business and a review of the Prestige operating model in France,” the spokesperson continued. “The proposal is subject to local labor law.”

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The AFP reported earlier in the day that the maker of CoverGirl, Kylie Cosmetics and Lancaster products plans to cut 155 out of 200 jobs in France, citing union sources.

It would be part of a larger reshaping of the group.

In April 2025, under former chief executive officer Sue Nabi, Coty said it would be eliminating up to 700 jobs worldwide as it revised a strategy launched during the pandemic. At the time, she said that due to recent cyclical and structural changes in the beauty industry and global economy, such as the rapid acceleration of e-commerce, retail channel consolidation and consumers’ new ways to discover brands, the company needed again to adapt and evolve.

That would include streamlining organizational structure across key markets to unlock operational efficiencies, making support functions more productive, boosting innovation impact and reducing non-people fixed costs across all areas of spend.

Nabi exited Coty in December 2025 and was succeeded by Markus Strobel, today executive chairman and interim CEO of the group.

The plan just unveiled for France came two days after Coty reported results, which beat estimates, for the first quarter of its fiscal-year 2027, ended Sept. 30. In the period, the company’s net revenue fell 1 percent to $1.55 billion. Within that, Prestige net revenue fell 1 percent to $1.05 billion, while Consumer Beauty net revenue decreased 2 percent to $496.8 million.

From CoverGirl.Courtesy

Coty had announced in September 2025 that it would carry out a strategic review of its consumer business as well as of operations in Brazil. That study is scheduled to be completed by the close of calendar-year 2026.

The market smiled on Coty’s first-quarter results. On Thursday, company stock hit an intraday high percentage gain of 17.9 percent above the prior day’s close.

Coty stock is up almost 30 percent and 8.5 percent over the past 12 months.

Of Coty’s estimated 200 employees in France, about half are based in Paris in roles linked to marketing, sales and supply chain, with about 50 in sales positions, according to the AFP.

In Paris, the company is headquartered in a stately building on Rue du 4 Septembre, on the Right Bank.