The company that makes brands such as Sharpie, Mr. Coffee, Yankee Candle, and Graco said Monday it will slim its workforce to be more competitive.
Newell Brands said the plan is “designed to strengthen the company’s competitiveness, deliver greater value for consumers and drive long-term value creation.”
Newell then laid out how it will achieve that goal:
As part of the plan, the company will reduce its global workforce by over 900 employees (approximately 10% of professional and clerical employees), with limited impact on manufacturing or supply chain operations. Professional and clerical separations in the United States are largely expected to occur this month, with international actions continuing through 2026, subject to local law and consultation requirements.
In addition, the company is closing about 20 Yankee Candle stores in the United States and Canada. Those closures are expected to happen in January.
Newell Brands also owns other well-known names including Ball, Rubbermaid, Sunbeam, and CrockPot.
The restructuring is expected to cost up to $90 million.
In a statement, President and Chief Executive Officer Chris Peterson explained, “We’ve made meaningful progress executing our strategy and strengthening Newell Brands, but there is more work to do. This productivity plan is about taking the next, disciplined step to enhance efficiency, sharpen our strategic focus, and deliver stronger, more consistent performance. Ultimately, our goal is to deliver greater value for consumers and create sustained long-term value for our shareholders.”
According to Reuters, the CEO said in February the company was working to not be so reliant on Chinese suppliers amid President Donald Trump’s tariff policies that are aimed at strengthening the U.S. economy.
“The Sharpie maker, which partly manufactures and sources products from China, said it plans to bring down the cost of finished goods imported to the U.S. to less than 10% from around 15% of the company’s total cost of goods sold by the end of the year,” the Reuters article stated.
The Sharpie pens are manufactured in Tennessee, according to the Wall Street Journal (WSJ), which also noted their felt tips are the only piece imported and they come from Japan.
“It didn’t used to be this way. Back in 2018, many Sharpies were made abroad. That’s when Chris Peterson, who was the CFO of Sharpie maker Newell Brands, challenged his team to answer a question: How could they keep Newell from becoming obsolete compared with factories in Asia?” the article continued.
“‘I felt like we had an opportunity to dramatically improve our U.S. manufacturing,’ he said. Peterson is now the CEO. And these days, most Sharpies—in all 93 colors—are made at this 37-year-old factory. Newell did it without reducing the employee count, and without raising prices,” the newspaper stated, adding, “But to get to this place took close to $2 billion in investments across the company, thousands of hours of training and a total overhaul of the production process.”
Read the full article here