Newell Manufacturers, the maker of Sharpie and Yankee Candle, mentioned Monday it’s shedding greater than 900 staff, or about 10% of its workforce, as the corporate seeks to chop prices.
Newell additionally mentioned in a press release that it’ll shut roughly 20 Yankee Candle shops throughout the U.S. and Canada early subsequent yr as a part of its cost-cutting plan. The layoffs are set to start this month, in line with the Atlanta-based firm. Newell’s different manufacturers embrace Mr. Espresso, Oster, Rubbermaid and Sunbeam.
The publicly listed firm, whose shares have fallen early 62% this yr amid slowing development, launched a turnaround plan in 2023 because it tries to spice up gross sales. The corporate has additionally mentioned it’s going to improve its use of automation and synthetic intelligence to spice up productiveness.
“We have made significant progress executing our technique and strengthening Newell Manufacturers, however there may be extra work to do,” Newell Manufacturers president and CEO Chris Peterson mentioned in a press release. “This productiveness plan is about taking the subsequent, disciplined step to boost effectivity, sharpen our strategic focus, and ship stronger, extra constant efficiency.”
In October, Newell reported third-quarter internet gross sales of $1.8 billion, down 7.2% from the year-ago interval. Web revenue for the quarter rose to $21 million, in contrast with a internet lack of $198 million within the year-ago interval.
Newell didn’t disclose which Yankee Candle shops will shut in January of 2026, however mentioned the transfer “aligns the model’s footprint with trendy client purchasing behaviors.”
The corporate expects to take a cost of as much as $90 million to finish the layoffs and retailer closures, largely for severance prices. Over the long term, the plan is predicted to generate value financial savings of as much as $130 million.
Different makers of client items have additionally confronted headwinds, resembling added prices from tariffs and tepid client demand as customers grapple with greater prices.
