Newell Brands ( NASDAQ: NWL ) announced a restructuring and savings initiative that entails significant headcount reductions on Monday.
The initiative, entitled Project Phoenix, will slim operations into 3 segments in order to “unlock additional efficiencies” and drive savings. Under the plan, Commercial Solutions, Home Appliances and Home Solutions segments will be combined into the overarching Home & Commercial Solutions business, while Learning & Development and Outdoor & Recreation will remain as the other two segments.
“We are taking action to simplify and strengthen our organization by leveraging the scale and power of One Newell to optimize our cost structure and operate more efficiently,” CEO Ravi Saligram said. “Based on the success of Project Ovid, we are moving to a unified global manufacturing organization that we expect to drive meaningful margin improvement in the long term. Also, we are reducing international fragmentation by moving to a One Newell go-to-market approach in key geographies.”
The plan also entails the elimination of approximately 13% of office positions at the company. Layoffs are underway in the current quarter and are due to conclude by year-end. The plan is projected to provide annualized pre-tax savings of $220M to $250M.
Newell Brands ( NWL ) stock rose 2.33% on Monday.
Read more on recent C-suite shifts at the company .
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Newell Brands announces 13% cut to white-collar staff