Consumer products manufacturer Newell Rubbermaid Inc. will cut 1,900 jobs and reorganize the company as part of a restructuring plan aimed at saving money for reinvestment.
The company plans to eliminate 10% of its workforce by mid-2015, and departments will be reorganized with several executives replaced.
This is the second round of a restructuring started in 2011, when Michael Polk became chief executive officer. In 2011, some 500 jobs were cut, operating units were reduced and resources were shifted to brands with growth potential.
Rubbermaid’s restructuring plan, called Project Renewal, will cost the company $250 million to $275 million by the end of second quarter 2015. For the same time period, it is expected to save $180 million to $225 million annually.
Savings will be invested in growing the company’s brands and boosting sales outside the US, notably in Latin America and China.
Development, Delivery Focus
Rubbermaid will be reorganized into two groups that will focus on development and delivery. The development group will include marketing, and research and development functions, while delivery will include supply chain and general management.
Polk says in a statement: “I see more potential in our business today than I imagined upon joining the company 15 months ago.” He adds that Rubbermaid will be cautious about the types of investments and risks it is willing to take.
The company is best known for its Rubbermaid containers, Sharpie pens, Paper Mate pens, Calphalon cookware and Graco strollers.
Key Statistics - World Household Product Industry (source: MarketLine)
- In 2010, the world household product industry reached $170 billion in value, having grown nearly 3.5% over the previous year.
- It is forecast the world household product industry will be valued at over $202 billion in 2015, marking an increase of 19% since 2010.
- The largest segment of the world household product industry is textile washing products, which account for 32% of total market value.
- Nearly 36% of the world household product industry's value is generated from the European market.