Newell Brands Slashes Office Roles By 7% In Major Organizational Shake-Up: Details

Consumer products maker Newell Brands Inc NWL plans an organizational realignment to strengthen its front-end commercial capabilities.

Newell plans to reduce its office roles by approximately 7%, with most of the actions expected to be complete by the end of 2024.

NWL will also optimize its real estate footprint and pursue other cost-reduction initiatives. 

The decision supports the company's Where to Play / How to Win choices unveiled in June of 2023.

The company expects the initiative to unlock operational efficiencies and cost savings, reduce complexity and free up funds for reinvestment.

Some of the actions the company intends to take include organizational design changes, simplifying and standardizing regional go-to-market organizations, and centralizing domestic retail sales teams.

Once fully executed, the company expects to realize annualized pre-tax savings of $65 million to $90 million, net of reinvestment, with $55 million to $70 million expected in 2024.

Restructuring and related charges are estimated to be $75 million to $90 million and to be incurred by the end of 2024. 

"Through the organizational design changes, we expect to maximize accountability and ownership of financial results, drive consistency in how we work, reduce overhead cost structure and complexity, while investing in the capabilities we need to win," said President and CEO Chris Peterson.

Price Action: NWL shares are trading higher by 2.68% at $8.64 on the last check Monday.

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