Oct. 23, 2025 - Essity today is launching measures to create better conditions for profitable growth. Actions include an organizational change that decentralizes decision-making and strengthens end-to-end accountability for each product category, and a cost savings program that is expected to generate annual savings of approximately SEK 1 billion with full effect by the end of 2026.
"Today, we're launching measures to create better conditions for Essity to increase its growth rate going forward and to faster achieve our targets," said Ulrika Kolsrud, President and CEO, Essity.
According to Essity, the organizational change will simplify Essity's structure and create end-to-end accountability. This will further enhance customer and consumer focus, increase speed, agility, and operational efficiency. The change facilitates increased strategic focus on the product categories and segments with the greatest potential for profitable growth.
The new organization will consist of the business areas: Health & Medical, Personal Care, Consumer Tissue, and Professional Hygiene, with clear overall responsibility in each business area for innovation, production, marketing and sales.
Essity's current Consumer Goods business area will be split into Personal Care and Consumer Tissue. The company's global units Global Marketing & Innovation and Global Supply Chain will be integrated into the four business areas.
The changes will apply as of January 1, 2026.
Essity's new structure will be reflected in the financial reporting as of the interim report for the first quarter of 2026, the company said.
The cost savings program primarily targets sales and administrative expenses, while marketing costs (A&P) are not in scope. The program is expected to generate annual savings of approximately SEK 1 billion, with full effect by the end of 2026, and part of this amount will be derived from the organizational change, Essity noted.
The cost savings will mainly be invested in profitable volume growth, the company added.
Essity is a producer of consumer tissue, professional and personal hygiene and health products with sales in approximately 150 countries under the leading global brands TENA and Tork, and other brands such as Actimove, Cutimed, JOBST, Knix, Leukoplast, Libero, Libresse, Lotus, Modibodi, Nosotras, Saba, Tempo, TOM Organic and Zewa.
SOURCE: Essity