Coty to Cut 155 of 200 Jobs in France in Operating Overhaul

Coty plans to eliminate 155 of its roughly 200 jobs in France, union sources told AFP, as the maker of CoverGirl, Kylie Cosmetics and Lancaster reshapes its French operating model.

The company confirmed the move on Friday. "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," a Coty spokesperson said.

"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."

What does this change for Coty's French business?

The cuts would fall hardest on a small local footprint. About half of Coty's estimated 200 employees in France are based in Paris, working in marketing, sales and supply chain roles. Around 50 hold sales positions, according to AFP. Coty's French headquarters sits in a stately building on Rue du 4 Septembre, on the Right Bank of Paris.

The French plan forms part of a wider global restructuring. In April 2025, under then-chief executive officer Sue Nabi, Coty said it would eliminate up to 700 jobs worldwide as it revised a strategy launched during the pandemic.

Nabi framed the cuts as a response to structural shifts. She cited "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," saying the company needed to adapt and evolve again.

The April 2025 program included:

• Streamlining organizational structure across key markets to unlock operational efficiencies
• Making support functions more productive
• Boosting innovation impact
• Reducing non-people fixed costs across all areas of spend

Who is leading the restructuring now?

Nabi exited Coty in December 2025. Markus Strobel succeeded her and now serves as executive chairman and interim CEO of the group.

Coty also announced in September 2025 a strategic review of its Consumer Beauty business and of its operations in Brazil. That study is scheduled to be completed by the close of calendar-year 2026, a deadline that will determine whether deeper changes to the portfolio follow the French job cuts.

How strong is the financial backdrop?

The French announcement came two days after Coty reported first-quarter results for fiscal-year 2027, ended Sept. 30, that beat estimates. Net revenue fell 1 percent to $1.55 billion in the period.

Prestige net revenue declined 1 percent to $1.05 billion. Consumer Beauty net revenue decreased 2 percent to $496.8 million — the division now being reshaped in France.

Investors welcomed the numbers. On Thursday, Coty stock hit an intraday gain of 17.9 percent above the prior day's close. The shares are up almost 30 percent over the past 12 months and 8.5 percent year to date, giving Strobel room to press ahead with restructuring while the market rewards cost discipline over the near-term revenue softness.