Sandy Springs-based Newell Brands, the parent company of Sharpie and Rubbermaid, has announced plans to slash 13% of its workforce, cutting thousands of jobs worldwide.
The cuts, part of a restructuring from five divisions into three, will save the company up to $250 million, according to Ravi Saligram, Newell’s chief executive, who announced the plan Monday in an online statement.
“There’s no sugar-coating this news,” he wrote. “We will have to part with colleagues who we value and enjoy working with.”
The layoffs, to begin this quarter, will include separation packages, according to Saligram.
Last year, Newell had revenues of $9.98 billion, a nearly 5% decline from the previous year.
The changes announced Monday, part of a plan dubbed Project Phoenix, includes some shifts in upper management. Executives named to head the three segments are Kris Malkoski, Mike McDermott and Jim Pisani. Dennis Senovich will head up manufacturing, distribution, transportation and customer service functions.
Changes in the company’s structure are necessary to improve profitability, especially in light of the current economic uncertainty, Saligram said. “We expect to unlock significant savings from the restructuring initiatives, which should help partially offset the impact of macro-economic pressures on the business, while making us a more nimble and agile organization.”
Company officials did not respond to questions from The Atlanta Journal-Constitution about the impact of the restructuring on the Newell workforce here.
The company has about 600 employees in the region, according to a list compiled by the Metro Atlanta Chamber. The company website says Newell has about 29,000 employees globally, but business magazine Barron’s puts the number several thousand higher.
Shares of Newell rose modestly Monday on Wall Street, trading just below $16 for much of the day. Company stock had peaked earlier in the year at $24.70 a share.
Newell owns a wide gamut of household brands, from Rubbermaid and Sharpie to Mr. Coffee, Coleman, Yankee Candle, Elmer’s Glue, and Paper Mate.
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