Beauty company Coty Inc. confirmed Monday that it is moving its main office to Amsterdam.
The move was made on the heels of an operations overhaul.
The New York-based company (NYSE: COTY) says it will write down about $3 billion in value of its brands acquired from Procter & Gamble Co. It will ultimately move what it calls its "management headquarters" to the Netherlands capital.
A company spokeswoman said Coty will continue to have a presence at its current Manhattan office in the Empire State Building.
Coty has been struggling with weak sales due to supply chain disruptions in Europe and the United States.
The problems stem from the company's 2016 purchase of about 40 P&G beauty brands, including CoverGirl, Max Factor and Clairol. Coty paid about $12 billion at the time.
“We will focus our strategic effort and investments on fewer brands globally while simplifying our operations and organization,” CEO Pierre Laubies said.
This includes consolidation of management under a new "centralized management headquarters" where most of Coty’s executive team and corporate functions are expected to be based.
Coty believes Amsterdam would be a “cost-efficient and tax stable location” and bring the company closer to its main markets.
As part of the overhaul, Coty has reached an agreement with lenders to fund a restructuring plan that it believes will reduce organizational layers and reorganize the business into regional units. The new organization design is slated to go into effect by Jan. 1.
The so-called "full structure implementation" is expected to be completed by July 1, 2020.
Coty, founded in 1904 by French businessman François Coty, isn't the only company switching cities to save money. Investment management firm AllianceBernstein announced in its latest filing that it is moving its corporate headquarters from New York to Nashville, Tennessee.
AT&T Services Inc. filed notice indicating that it is relocating some operations from Syracuse, New York to Orange Park, Florida.
Up to 155 layoffs were announced, but each affected employee was offered a job in the new location along with a relocation allowance.
No comments:
Post a Comment