Essity has launched a cost-cutting program targeting annual savings of SEK 1 billion, according to Reuters.
The programme primarily targets sales and administrative expenses, while marketing (A&P) costs are not included, according to Euwid.
Essity will also decentralise decision-making and push for end-to-end accountability within each product category. According to Essity, this will enhance customer and consumer focus and increase speed, agility and operational efficiency.
However, the group reported third-quarter earnings above market expectations on Thursday, citing organic growth driven by higher prices.
The cost saving plan would include a split of Essity's Consumer Goods division into separate tissue and personal care units.
Essity's much bigger U.S. peer Procter & Gamble is also undergoing restructuring that will include cutting about 7,000 jobs over the next two years, according to Reuters.
"Our efforts to drive growth and reduce costs have yielded results and the third quarter developed favourably in continued challenging market conditions," CEO Ulrika Kolsrud stated in the earnings report.
Adjusted EBITA margin increased to 14.6%, versus 13.7% in the second quarter of 2025.
