IFF to realign fragrance business and cut jobs

By Andrew McDougall

- Last updated on GMT

International Flavors and Fragrances (IFF) has announced its latest strategic initiative designed to strengthen its global go-to-market capabilities and realign its Fragrance Business Unit, but this will mean job cuts across the business.

Following the decision to realign the responsibilities in its Fragrance BU under its group president, Nicolas Mirzayantz, IFF will also reduce the workforce in fragrances as well as various parts of the organization.

The Fragrance BU will reorganize its Functional Fragrances group to align with the global category approach used for Fine Fragrance & Beauty Care and Fragrance Ingredients, in a bid to increase profitability.

Restructure and reshuffle

“This realignment completes the roll-out of our full category structure within the Fragrance Business Unit,”​ said Mirzayantz.

The group president was keen to avoid talking about the job cuts, stating that he believes the realignment will strengthen IFF’s expertise and improve profitability overall.

“This will strengthen our expertise and ability to win in key categories and key markets while simultaneously simplifying our decision-making process, improving resource allocation, and enhancing collaboration, as we continue to deliver consumer-preferred fragrances to our customers,”​ he said.

Strategic review

The announcement follows the company's move to set up a Scientific Advisory Board​ last week to boost innovation in research and development within the company as part of the same strategic review.

The company has also stated it will also continue to reallocate a portion of its Functional Fragrance resources from the developed markets to the emerging markets, increasing emphasis on its Singapore and Mexico facilities.

“Today’s announcement highlights our commitment to the plan that was developed in our strategic review,”​ said Doug Tough, IFF CEO.

“These changes are expected to provide improved business fundamentals that, when combined with our strategy to leverage our geographic reach, strengthen our innovation platform and maximize our portfolio, should create long-term value for our shareholders.”

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