Sharpie, Yankee Candle parent Newell Brands reducing its office jobs by 13%
Newell Brands will soon start reducing its office staff, the corporate parent of brands like Sharpie and Yankee Candle announced Monday.
The layoffs will impact about 13% of office roles, according to a Newell Brands press release. The consumer goods company reported a total headcount of roughly 32,000 at the end of 2021, including 14,000 in North America, it said in its most recent annual report.
SPOTIFY TO LAY OFF 6% OF WORKFORCE AS NUMBER OF TECH JOB CUTS GROWS
Newell Brands said it anticipates that by the end of the year most of the layoffs will be done. The cuts, which are part of the company’s Project Phoenix restructuring plan, will begin in 2023’s first quarter.
Project Phoenix involves measures to “simplify the organizational structure, streamline the company’s real estate, centralize its supply chain functions, which include manufacturing, distribution, transportation and customer service, transition to a unified One Newell go-to-market model in key international geographies , and otherwise reduce overhead costs,” according to the company’s release.
According to a Securities and Exchange Commission (SEC) filing, Newell Brands anticipates the plan will come with $100 million to $130 million in total charges, including $80 million to $105 million “related to cash severance payments and other termination benefits.” Roughly $15 million to $20 million of the total restructuring charges are expected to stem from reducing its office footprint.
Overall, Project Phoenix is expected to bring in $220 million to $250 million in annualized pre-tax savings, “including headcount savings, real estate savings and other bought cost reductions,” the company said in the filing.
MORE US COMPANIES BRACE FOR JOB CUTS AMID LIKELY RECESSION, SURVEY SHOWS
Additionally, as part of its restructuring initiative, Newell Brands will combine three of its operating segments – Commercial Solutions, Home Appliances and Home Solutions – into one called Home & Commercial Solutions. It will now only have three segments total, instead of five.
|NWL||NEWELL BRANDS INC.||15.97||+0.92||+6.11%|
“These actions are a continuation of the simplification agenda that we have driven over the last four years and in response to a difficult macro environment,” CEO Ravi Saligram said in a statement. “We expect to unlock significant savings from the restructuring initiatives, which should help partially offset the impact of macroeconomic pressures on the business, while making us a more nimble and agile organization.”
Newell Brands’ layoffs come as multiple other companies have announced in recent weeks that they’re reducing their own headcounts.
On Monday, music-streaming service Spotify said it planned to cut its global workforce by 6%.
Google parent Alphabet and tech company Microsoft announced layoffs of 12,000 and 10,000, respectively, last week.
AMAZON, MICROSOFT, GOOGLE PARENT ALPHABET TOP GROWING LIST OF LAYOFFS
Other firms that have recently said they will make job cuts include financial services firm LendingClub Corp., online styling service Stitch Fix and software company Salesforce.