Newell Brands, Inc. (NWL), a distributor of consumer and commercial products, said on Monday that it is axing around 13 percent of its office positions to cut costs. It will also record charges by end of this year.
Ravi Saligram, CEO of Newell, said: "Specifically, we are evolving our operating model into three operating segments based on similarities of consumer and customer dynamics, which will reduce duplication and yield synergies."
Newell is consolidating its five operating segments into three operating segments.
The company will combine its previously reported Commercial Solutions, Home Appliances, and Home Solutions segments into one operating segment- Home & Commercial Solutions.
Learning & Development and Outdoor & Recreation will remain as its other two operating segments.
The company will start slashing the headcount in the first quarter, which is expected to be completed by the end of this year.
In connection with the cost cutting program, Newell expects to realize annualized pre-tax savings of $220 to $250 million.
These restructuring charges are projected to be in the range of $100 million to $130 million, and are anticipated to be substantially incurred by the end of 2023.
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