Newell Brands Announces Organizational Realignment
08 Janeiro 2024 - 10:30AM
Business Wire
Plan to Accelerate Where to Play / How to Win
Strategy Choices and Reduce Overhead Cost
Expect Annualized Pre-Tax Savings of $65
Million to $90 Million, Net of Reinvestment
Newell Brands (NASDAQ: NWL) today announced an organizational
realignment, which is expected to strengthen the company’s
front-end commercial capabilities, such as consumer understanding
and brand communication, in support of the Where to Play / How to
Win choices the company unveiled in June of 2023. In addition to
improving accountability, Newell’s organizational realignment
should further unlock operational efficiencies and cost savings,
reduce complexity and free up funds for reinvestment.
“In June 2023, we introduced a comprehensive corporate strategy,
which has been cascaded enterprise-wide and integrated into
Business, Region, Brand and Functional strategies. After a thorough
assessment, we identified opportunities to strengthen Newell’s
front-end commercial capabilities, which are critical to returning
the company to sustainable and profitable growth. To support our
strategic choice to disproportionately invest in the largest and
most profitable brands, we are implementing a brand management
model within the three existing global segments with full P&L
ownership and four regional go-to-market commercial organizations,”
said President and Chief Executive Officer Chris Peterson. “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.
These actions will enable the company to operate with greater speed
and agility. We appreciate our employees’ continued efforts during
this transition as we take the difficult but necessary actions to
strengthen and reshape the organization for sustainable, long-term
competitive advantage and value creation.”
As part of the organizational realignment, the company is making
several organizational design changes, which entail: standing up a
cross-functional brand management organization, realigning business
unit finance to fully support the new global brand management
model, further simplifying and standardizing regional go-to-market
organizations, and centralizing domestic retail sales teams, the
digital technology team, business-aligned accounting personnel, the
Manufacturing Quality team, and the Human Resources functions into
the appropriate center-led teams to drive standardization,
efficiency and scale with a One Newell approach. The company will
also further optimize Newell’s real estate footprint and pursue
other cost reduction initiatives. These actions are expected to be
substantially implemented by the end of 2024.
Once organizational design changes are fully executed, the
company expects to realize annualized pre-tax savings in the range
of $65 million to $90 million, net of reinvestment, with $55
million to $70 million expected in 2024. Restructuring and related
charges associated with these actions are estimated to be in the
range of $75 million to $90 million and are expected to be
substantially incurred by the end of 2024. The company plans to
reduce its office roles by approximately 7%, with most of these
actions expected to be complete by the end of 2024, subject to
local law and consultation requirements.
The company will share additional information about
organizational realignment in a Form 8-K filed today with the
Securities and Exchange Commission and during its fourth quarter
and full-year 2023 earnings call on February 9, 2024.
About Newell Brands
Newell Brands (NASDAQ: NWL) is a leading global consumer goods
company with a strong portfolio of well-known brands, including
Rubbermaid, Sharpie, Graco, Coleman, Rubbermaid Commercial
Products, Yankee Candle, Paper Mate, FoodSaver, Dymo, EXPO,
Elmer’s, Oster, NUK, Spontex and Campingaz. Newell Brands is
focused on delighting consumers by lighting up everyday
moments.
This press release and additional information about Newell
Brands are available on the company’s website,
www.newellbrands.com.
Caution Concerning Forward-Looking
Statements
Some of the statements in this press release, including, but not
limited to, those statements relating to the expected benefits of
and timing of completion of the organizational realignment; pre-tax
savings from organizational realignment; the number of positions
eliminated pursuant to the organizational realignment; the expected
costs, charges and cash expenditures associated with the
organizational realignment; unlocking operational efficiencies;
returning the company to sustainable and profitable growth; and
reshaping the organization for sustainable, long-term competitive
advantage and value creation, are forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements are based on the company’s current plans, assumptions,
beliefs, and expectations. Forward-looking statements are subject
to the occurrence of many events outside of the company’s control.
Actual results and the timing of events may differ materially from
those expressed or implied in the forward-looking statements due to
numerous factors that involve substantial known and unknown risks
and uncertainties. These risks and uncertainties include, among
other things, the risks and uncertainties included in the company’s
reports on Forms 10-K, 10-Q and 8-K and in other filings the
company makes with the U.S. Securities and Exchange Commission from
time to time, available at www.sec.gov. Forward-looking statements
should be considered in light of these risks and uncertainties.
Investors and others are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements
contained herein speak only as of the date hereof. The company
assumes no obligation to update any forward-looking statements as a
result of new information, future events or developments.
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version on businesswire.com: https://www.businesswire.com/news/home/20240108720798/en/
Investors: Sofya Tsinis VP, Investor Relations +1 (201)
610-6901 sofya.tsinis@newellco.com
Media: Beth Stellato Chief Communications Officer +1
(470) 580-1086 beth.stellato@newellco.com
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