Oatly is handing off control of its supply chain to Global President Jean-Christophe Flatin as the plant-based milk producer looks to streamline operations amid declining profits.
Chief Supply Chain Officer Johan Rabe stepped down after two years, the company confirmed in an email. Flatin, a former Mars executive who took over as global president in June, will now oversee Oatly’s supply chain network as part of his role, CEO Toni Petersson said on an earnings call Monday.
The leadership change comes as Oatly pursues an organizational restructuring expected to save up to $50 million a year. Oatly is cutting costs and reining in expansion plans after profit margins declined and revenue came in lower than expected in Q3.
The company is also pursuing headcount reductions and is shifting to an asset-light manufacturing model, backtracking from plans to operate its own facilities to maintain supply chain resilience.
“This gives us flexibility to expand capacity faster,” said Petersson, noting that there’s been greater availability of co-packers.
An Oatly spokesperson said that Rabe left in late summer, prior to the restructuring announcement.
Oatly’s president of Europe, the Middle East and Africa also departed. COO Daniel Ordonez, who joined in June, will take over those responsibilities.The brand has prioritized production in the United States this year as demand wanes abroad.
“As any fast growth company, we have grown very fast and so has some parts of our organization,” said Flatin. “And therefore, we really need to bring simplicity and clarity.”
Correction: This story has been updated to reflect the fact that Rabe's departure occurred before the restructuring announcement.