Newell Brands Announces Job Cuts and Store Closures

Newell Brands, known for products like Sharpie, announced on Monday that it will eliminate 900 positions, which represents about 3.8% of its total workforce. This decision is expected to result in restructuring costs that could reach up to $90 million.

Additionally, the company plans to shut down roughly 20 Yankee Candle stores in the U.S. and Canada, a move that will affect about 1% of the brand’s scented candle sales, with closures anticipated by January.

Like many companies in the consumer goods sector, Newell is facing challenges from rising tariff costs and a decline in consumer demand, largely driven by inflation and economic worries.

The anticipated restructuring will likely lead to pre-tax charges of around $75 million to $90 million, which Newell expects to recognize by the end of 2026.

About 10% of the company’s professional and administrative workforce will be impacted by the layoffs. As of December 31, 2024, Newell employed roughly 23,700 people worldwide.

Through these restructuring efforts, Newell anticipates achieving annual cost savings between $110 million and $130 million.

Sales in Latin America are recovering, albeit slower than anticipated, prompting the company to adjust its forecasts. They now expect fourth-quarter net sales declines to fall toward the higher end of the previously projected range of 1% to 4%.

Earlier in October, the company revised its profit outlook, forecasting full-year sales to be significantly lower due to tariff implications and dwindling demand.

Newell has been attempting to turn around its business after experiencing sales challenges over the last two years, and its stock has plummeted by 63% this year.

Interestingly, despite the announcement, the stock saw an increase of more than 3% on Monday.