Essity Strengthens Conditions for Profitable Growth with Organizational Change and SEK 1 Billion Savings Program

ssity, a global hygiene and health company, announced strategic organizational changes and a SEK 1 billion annual cost savings program to drive profitable growth. The company will decentralize decision-making and strengthen end-to-end accountability across four business areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene. The current Consumer Goods division will be split into Personal Care and Consumer Tissue, with Global Marketing & Innovation and Global Supply Chain integrated into the new structure. The cost savings mainly target sales and administrative expenses and are expected to be fully realized by the end of 2026, with a focus on reinvesting in profitable volume growth. CEO Ulrika Kolsrud emphasized that these measures will increase speed, agility, and operational efficiency while maximizing the growth potential across key product categories. This organizational change takes effect on January 1, 2026. Essity's Q3 2025 financial results showed solid organic growth despite a 4.5% sales decrease, with EBITA improving and strong cash flow reported.

Jino John

10/23/20251 min read