Newell Brands (NASDAQ: NWL) has just announced a global productivity plan aimed at enhancing the company's competitiveness, delivering greater value for consumers, and driving long-term value creation. As part of this plan, the company will reduce its global workforce by over 900 employees, which represents approximately 10% of its professional and clerical employees. The professional and clerical separations are expected to primarily occur in the United States this month, with international actions continuing through 2026, subject to local law and consultation requirements.
In addition to the reduction in workforce, Newell Brands will close approximately 20 Yankee Candle® stores in the United States and Canada, representing roughly 1% of brand sales. The company expects to record pre-tax restructuring and related charges of approximately $75 million to $90 million, primarily for severance and related costs, with most of the charges to be recognized by the end of 2026.
Once fully implemented, the productivity plan is projected to generate annualized pre-tax cost savings of approximately $110 million to $130 million. Despite the planned changes, the company has affirmed its previously issued guidance for fourth quarter normalized operating margin, normalized earnings per share, and operating cash flow.
Newell Brands' CEO, Chris Peterson, emphasized the company's commitment to building a more agile and high-performing organization and delivering greater value for consumers. The productivity plan is intended to raise performance standards, simplify processes, streamline overhead, and redirect resources to the highest-value activities. This initiative is enabled in part by the company’s use of automation, digitization, and artificial intelligence to simplify operations, accelerate decision-making, and strengthen execution across functions.
Furthermore, the company's CFO, Mark Erceg, is set to discuss the productivity plan and its expected benefits at the Morgan Stanley Global Consumer & Retail Conference on December 2, 2025.
Newell Brands is a leading global consumer goods company with a portfolio of well-known brands, including Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle, among others. Following these announcements, the company's shares moved 4.29%, and are now trading at a price of $3.65. For more information, read the company's full 8-K submission here.
