Swedish cosmetics seller Oriflame has undergone a reorganization aimed at leveraging digital opportunities and maximizing efficiency throughout the business.
The Luxembourg-based company has formed a global Commercial Division led by Jesper Martinsson, newly appointed Senior Vice President and Head of Commercial Division and Deputy CEO. The division aligns Oriflame’s sales, marketing and supply chain operations.
To focus strategy execution, the company has decentralized its Regional Organization, with separate teams coordinating strategy in the regions of Latin America, Europe & Africa, CIS (Russian Commonwealth), and Asia & Turkey. Oriflame’s reporting will reflect the new split as of the first quarter of 2016.
Additionally, the company has established a Global Manufacturing division, looking to optimize an area formerly within the scope of Global Operations.
“In a constantly changing global environment, we need to become more agile,” President and CEO Magnus Brännström said in a statement. “The organisational change we announce today is a vigorous step to further strengthen our position in a more digital world. In addition, it will facilitate improved succession planning as well as promote talent within the company.”
As a result of the fine-tuning, which takes effect Jan. 1, 2016, Oriflame expects one-time restructuring charges of approximately 6.5 MEUR (US$7.1 million) and, beginning in 2016, about 4 MEUR (US$4.3 million) in annual savings.