The company known for brands like Sharpie, Mr. Coffee, Yankee Candle, and Graco announced on Monday a plan to downsize its workforce to boost competitiveness.
Newell Brands stated that the initiative “aims to enhance the company’s competitiveness, provide more value to consumers, and foster long-term value creation.”
To meet these objectives, the firm is set to cut its global workforce by over 900 positions, which amounts to around 10%. This reduction primarily affects professional and administrative roles, with minimal effects on manufacturing or supply chain operations. The layoffs are expected to occur in the U.S. this month, while international job reductions will continue through 2026, depending on local laws and consultations.
Additionally, Newell plans to close about 20 Yankee Candle locations in the U.S. and Canada, with those closures scheduled for January.
Besides Sharpie and Yankee Candle, Newell Brands also markets other popular products under names like Ball, Rubbermaid, Sunbeam, and Crockpot.
The restructuring is projected to incur costs of up to $90 million.
“While we’ve made significant strides in implementing our strategy and bolstering the Newell brand, there’s still more to accomplish,” said President and CEO Chris Peterson in a statement. “Our ultimate aim is to provide added value to our consumers and create enduring value for our shareholders.”
According to reports, in February, the CEO mentioned that the company is working to reduce its reliance on Chinese suppliers due to tariff policies that target bolstering the U.S. economy.
The report indicated that the Sharpie maker is looking to cut the cost of finished goods imported from China from about 15% of its overall costs to under 10% by year-end.
Interestingly, the Sharpie pens are now produced in Tennessee, as noted by the Wall Street Journal, which also pointed out that only the felt tips are imported from Japan.
Looking back to 2018, many Sharpies were manufactured overseas. At that time, Peterson, who was then CFO, pushed his team to consider how the company could remain competitive against its Asian manufacturers. “We observed a chance to significantly enhance American manufacturing,” he remarked. Now, most of the various Sharpie colors (all 93) are produced in a factory that has been running for 37 years. “Newell managed this without cutting jobs or hiking prices,” the report stated, adding that achieving this needed a massive investment of nearly $2 billion, along with extensive training and a complete revamp of production methods.
