Oatly’s supply chain boss is leaving as part of the restructuring

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Oatly’s supply chain leader is leaving as the plant-based milk maker seeks to streamline operations amid falling profits.

Chief supply chain officer Johan Rabe will step down after two years, the company confirmed in an email. former Mars manager Jean-Christophe Flatinwho took over as global president in June will now assume oversight oatlys supply chain network as part of his role as CEO Toni petersson said at a results call on Monday.

“Jean-Christophe has a very solid background in rapidly building other businesses, including the entire supply chain network on a global scale,” Petersson told investors.

The move is part of an organizational restructuring that is expected to save up to $50 million per year. Oatly cuts costs and curbs expansion plans after profit margins squeezed and third-quarter sales came in lower than expected.

The company is also seeking downsizing and transitioning to a low-asset manufacturing model, stepping back from plans to operate its own facilities to maintain supply chain resilience.

“This gives us the flexibility to add capacity more quickly,” said Petersson, noting that there has been greater availability of co-packers.

As part of the reorganization, Oatly’s President for Europe, the Middle East and Africa is also stepping down. COO Daniel Ordonez, who joined in June, will take on these responsibilities. The brand has prioritized production in the United States this year as demand abroad slacks.

“Like any fast-growing company, we’ve grown very quickly, as have some parts of our organization,” Flatin said. “And so we really need to bring simplicity and clarity.”

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