Coty to shutter German fragrance factory, 300 workers impacted

Coty Inc.
COTY,
+1.33%
said Wednesday that it will close its manufacturing facility in Cologne, Germany, a move aimed at increasing efficiency and generating savings. The factory produces fragrance products, employing 300 workers. The closure will be complete in summer 2022. “[O]ur network has been operating over-capacity in recent years and the considerable impact of COVID-19 has accelerated the need to take action,” said Richard Jones, chief global supply chain and R&D officer at Coty, in a statement. “This move will address the imbalance to increase our competitiveness and ensure we fully leverage our scale and remaining manufacturing sites.” Last year Coty set a goal to reduce costs by $600 million by fiscal 2023. Coty stock slipped 2% in Wednesday premarket trading, and is down 33.6% over the past year. The S&P 500 index
SPX,
-2.57%
has gained 18.7% over the last 12 months.