Firm says savings from job cuts will be reinvested into growing its brands globally
NEW YORK—Newell Rubbermaid plans to cut more than 1,900 jobs, or about 10 per cent of its worldwide workforce, over the next two and a half years.
The consumer products company, known for Sharpie pens and its namesake containers, says all savings from the job cuts will be reinvested into growing its brands globally and adding new sales capabilities in emerging markets.
Newell Rubbermaid also says its business will be restructured under two groups, a development organization and a delivery organization.
The announcement came as the Atlanta-based company reported third-quarter adjusted results that topped Wall Street’s expectations.
Newell Rubbermaid also raised its quarterly dividend by 50 per cent to 15 cents per share.
The company says its development organization will include segments such as tools, commercial products, writing, baby and parenting, home solutions and specialty.
These six segments are down from the company’s previous nine.
The group will also house Newell Rubbermaid Inc.’s marketing, design, insight, research and development and corporate development staff.
Mark Tarchetti, previously head of global corporate strategy at Unilever, will lead the development organization.
He will join Newell Rubbermaid in January and serve as chief development officer.
The delivery organization will include the company’s general management, supply chain, customer and channel development employees.
William A. Burke III, who currently serves as group president, will head the delivery organization and become chief operating officer.
As part of the restructuring, Newell Rubbermaid is getting rid of its consumer and professional operating groups.
The company is also expanding its restructuring program, called Project Renewal.
The expanded program is anticipated to save about $180- to $225-million on an annual basis once fully implemented by the end of 2015’s second quarter.
Newell Rubbermaid foresees restructuring charges between $250- and $275-million during the same period.
The Atlanta company, which was founded in 1903, currently has 19,900 employees, according to its website.