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Atlanta, GA – Newell Brands, the company behind household names like Sharpie markers and Yankee Candle, announced Monday it will be cutting approximately 900 jobs, representing about 10% of its total workforce. The move is part of a broader cost-cutting initiative by the Atlanta-based consumer goods giant.
In addition to the layoffs, which are slated to begin this month, Newell Brands also stated it would close roughly 20 Yankee Candle stores across the U.S. and Canada early next year. This retail adjustment is intended to “align the brand’s footprint with modern consumer shopping behaviors.” The specific locations of these closures were not disclosed.
Newell Brands, which also owns popular brands such as Mr. Coffee, Oster, Rubbermaid, and Sunbeam, has seen its shares decline by nearly 62% this year amidst slowing growth. The company initiated a turnaround plan in 2023 aimed at boosting sales and has indicated it will increase its use of automation and artificial intelligence to enhance productivity.
Chris Peterson, President and CEO of Newell Brands, commented on the decision, stating, “We’ve made meaningful progress executing our strategy and strengthening Newell Brands, but there is more work to do. This productivity plan is about taking the next, disciplined step to enhance efficiency, sharpen our strategic focus, and deliver stronger, more consistent performance.”
In its third-quarter report in October, Newell Brands recorded net sales of $1.8 billion, a 7.2% decrease from the same period last year. However, net income for the quarter saw an increase to $21 million, a significant improvement from the $198 million net loss reported in the prior-year period.
The company anticipates incurring a charge of up to $90 million to facilitate the layoffs and store closures, primarily for severance costs. Looking ahead, these strategic changes are expected to generate cost savings of up to $130 million.
Newell Brands is not alone in facing challenges within the consumer goods sector, with many manufacturers grappling with increased costs from tariffs and subdued consumer demand as shoppers contend with elevated living expenses.