Swiss direct selling cosmetics company Oriflame will be undergoing a major company reorganisation in a push to drive sales, streamline operations and strengthen its position in a more digital world. The restructuring will result in a one-off charge of approximately €6.5m, the company revealed.
Coming into effect from 1 January 2016, three key changes will be implemented. The first is the formation of a global Commercial Division, which will unite central functions within sales, marketing and supply chain. This division will be led by Jesper Martinsson as Head of Commercial Division, Senior VP and Deputy CEO.
Meanwhile, a decentralised Regional Organisation will also be formed, coordinated by Oriflame’s four global business regions: Latin America, Europe & Africa, CIS, and Asia and Turkey. From Q1 2016, this new split formation will show in Oriflame’s financial report.
Finally Oriflame’s Global Manufacturing business will be separated out from its Global Operations Division.
The creation of the new organisation is hoped to result in annual saving of approximately €4m from 2016. Magnus Brännström, CEO and President of Oriflame, said: “In a constantly changing global environment, we need to become more agile. 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 an improved succession planning as well as promote talent within the company.”
In addition to the above, a number of further personnel changes were announced. Oriflame’s new Group Management will be made up of Brännström, Martinsson and seven other individuals including: Gabriel Bennet, Michael Cervell, Thomas Edberg, Emma Hågemo, Stefan Karlsson, Johan Rosenberg and Antonia Simon-Stenberg.
