Essity's new CEO launches major overhaul for profitable growth
Hygiene products maker Essity AB on Thursday announced a major corporate overhaul that includes a new organizational structure and a cost-savings program aimed at boosting profitable growth.
The plan is the first major strategic move by Chief Executive Ulrika Kolsrud, who took the helm in June, and was announced as the company posted a slight rise in third-quarter profit.
“Today, I am launching measures that create better conditions for Essity to increase its growth rate going forward,” Ms. Kolsrud said in a statement.
Essity said it will decentralize decision-making and reorganize into four business areas, a change that will take effect on Jan. 1, 2026.
The company is also launching a cost-savings program targeting 1 billion Swedish Kronor in annual savings by the end of 2026, primarily from sales and administrative expenses.
According to the company, the savings will be reinvested to drive volume growth and the program will result in workforce reductions.
The announcement came as Essity reported third-quarter net sales fell 4.5% to 34.64 billion Swedish Kronor, while profit for the period rose to 3.36 billion Swedish Kronor from 3.33 billion a year earlier.
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Hygiene products maker Essity AB on Thursday announced a major corporate overhaul that includes a new organizational structure and a cost-savings program aimed at boosting profitable growth.
Essity AB reported a drop in second-quarter profit and sales, citing a weak economy and unfavorable currency effects in the first earnings report under new Chief Executive Ulrika Kolsrud.