Newell Brands, the parent of Marmot, Ex Officio, Stearns, Bubba, Coleman, and Contigo, along with a broad range of consumer brands outside the outdoor space, is unveiling a global productivity plan (Plan) designed to “strengthen the company’s competitiveness, deliver greater value for consumers and drive long-term value creation.”
The Plan is said to underscore the company’s disciplined execution, confidence in its strategic direction, and commitment to building a more agile and high-performing organization.
As part of the Plan, the company said it will reduce its global workforce by over 900 employees (or ~10 percent 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.
“We’ve made meaningful progress executing our strategy and strengthening Newell Brands, but there is more work to do,” said Chris Peterson, president and CEO, Newell Brands. “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.”
Newell outlined that by building on the company’s turnaround strategy launched in 2023, the Plan will “raise performance standards, simplify processes, streamline overhead, and redirect resources to the highest-value activities.” The Plan is reportedly enabled, in part, by the company’s use of “automation, digitization, and artificial intelligence to simplify operations, accelerate decision-making, and strengthen execution across functions.”
“These initiatives will enable Newell to further invest in innovation, brand building, and growth in a dynamic consumer environment,” the company said in a media release.
As part of this effort, Newell Brands will close roughly 20 Yankee Candle stores in the U.S. and Canada, representing roughly 1 percent of brand sales, with closures expected to take effect in January 2026. The company said the “retail optimization aligns the brand’s footprint with modern consumer shopping behaviors and supports its multi-channel growth strategy.”
The company expects to record pre-tax restructuring and related charges of approximately $75 million to $90 million, primarily for severance and related costs, with most of the charges to be recognized by the end of 2026. Once fully implemented, the company’s Plan is expected to generate annualized pre-tax cost savings of approximately $110 million to $130 million.
Newell Brands reaffirmed its previously issued guidance for fourth quarter normalized operating margin, normalized earnings per share, and operating cash flow. The company said it now expects fourth-quarter net and core sales results to be towards the lower end of its previously communicated guidance range, as sales trends in Latin America continue to improve but at a slower rate than originally anticipated.
Image courtesy Newell Brands/Marmot
