Newell Rubbermaid to shed 10 percent of workforce

Newell Rubbermaid, maker of Sharpie pens and its namesake containers, plans to cut 1,900 jobs, or about 10 percent of its worldwide workforce. The cuts are part of a reorganization effort by Newell Rubbermaid over the next two and a half years. 

Business Wire/File
This undated commercial file photo shows a Sharpie Fine Retractable 10-count marker pack. Newell Rubbermaid, the company that makes Sharpie pens and other consumer products, will be cutting about 10 percent of its staff over the next two and a half years as part of a reorganization effort

Newell Rubbermaid plans to cut more than 1,900 jobs, or about 10 percent of its worldwide workforce, over the next two and a half years as the consumer products company reorganizes its operations in a bid to boost profitability.

The company, known for Sharpie pens and its namesake containers, said Friday that its business will be restructured under two groups, a development organization and a delivery organization.

The announcement came as the Atlanta-based company reported third-quarter adjusted results that topped Wall Street's expectations. Newell Rubbermaid also raised its quarterly dividend by 50 percent to 15 cents per share.

Its shares slipped 10 cents to $19.99 in premarket trading.

Newell Rubbermaid Inc. said development organization will include segments such as tools, commercial products, writing, baby and parenting, home solutions and specialty. These six segments are down from the company's previous nine.

The group will also house Newell Rubbermaid Inc.'s marketing, design, insight, research and development and corporate development staff.

Mark Tarchetti, previously head of global corporate strategy at Unilever, will lead the development organization. He will joinNewell Rubbermaid in January and serve as chief development officer.

The delivery organization will include the company's general management, supply chain, customer and channel development employees.

William A. Burke III, who currently serves as group president, will head the delivery organization and become chief operating officer.

As part of the restructuring, Newell Rubbermaid said that it is getting rid of its consumer and professional operating groups. The company also announced some executive departures, including Penny McIntyre, who served as president of Newell Consumer; Chief Marketing Officer Ted Woehrle and Chief Customer Development Officer Paul Broitmann.

In some executive appointments, Newell Rubbermaid named Joe Cavaliere as global chief customer officer and appointed Richard Davies as chief marketing and insights officer. It also named Chuck Jones as chief design and research and development officer.

Newell Rubbermaid said that it will name a global chief supply chain officer in the coming weeks.

The company is also expanding its restructuring program, called Project Renewal. The expanded program is anticipated to save about $180 million to $225 million on an annual basis once fully implemented by the end of 2015's second quarter.Newell Rubbermaid foresees restructuring charges between $250 million and $275 million during the same period.

The Atlanta company, which was founded in 1903, currently has 19,900 employees, according to its website.

In its earnings report, the company said it earned $108.3 million, or 37 cents per share, in the three months ended Sept. 30. That compares with a loss of $177.6 million, or 61 cents per share, a year earlier.

The current quarter was free on impairment charges, while the prior-year period included a charge of $382.6 million.

Removing restructuring charges and other items, earnings were 47 cents per share.

Analysts polled by FactSet expected 44 cents per share.

Revenue edged down to $1.54 billion from $1.55 billion. Wall Street forecast $1.55 billion.

Core sales, which take out the unfavorable impact of foreign currency translation, rose 1.5 percent thanks to ongoing emerging markets growth and strong sales in its baby and parenting and Newell professional segments.

Gross margin improved on higher prices and better productivity, which offset escalating costs.

Newell Rubbermaid still expects full-year earnings of $1.63 to $1.69 per share, with core sales up 2 percent to 3 percent.

Analysts predict earnings of $1.68 per share.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to

QR Code to Newell Rubbermaid to shed 10 percent of workforce
Read this article in
QR Code to Subscription page
Start your subscription today