01.25.23
Newell Brands—home to high-profile home fragrance and candle brands—has announced a restructuring initiative that will cut staff and close the doors on the longstanding Deerfield, MA corporate office of Yankee Candle.
“We are taking action to simplify and strengthen our organization by leveraging the scale and power of One Newell to optimize our cost structure and operate more efficiently. 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,” said Chief Executive Officer Ravi Saligram.
The restructuring plan, known as Project Phoenix, is expected to result in the elimination of approximately 13% of office positions. The company will begin reducing headcount in Q1 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements, the company said.
According to Newell, ranked No 27 in Happi’s 2023 Top 50 Report, Project Phoenix is expected to be substantially implemented by the end of 2023. It also incorporates a variety of initiatives designed to simplify the organizational structure, streamline the company’s real estate and centralize its supply chain functions, which include manufacturing, distribution, transportation and customer service. The company's intent is to transition to a unified "One Newell "go-to-market model in key international geographies and otherwise reduce overhead costs.
In addition to the corporate offices in South Deerfield, MA, Newell will also shutter offices in Boca Raton, FL.
According to the CEO, Newell’s Boca employees will work remotely and from the Miami office as business requires, and South Deerfield employees will be moved to existing spaces locally.
“Both the Home Appliances and Home Fragrance businesses remain priorities for the company,” he penned.
Newell also owns Chesapeake Bay Candle and Wood Wick Candle.
Newell will begin reducing its headcount in the first quarter 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements. Layoffs will be made in the US, Canada in LATAM initially. Newell said employees in Australia and New Zealand (ANZ) will “receive a communication” on Jan. 30 related to staffing changes.
Effective immediately, Mike McDermott has been named the segment CEO for Home & Commercial Solutions, which includes its home fragrance brands.
Dennis Senovich, chief supply chain officer, will lead the company’s manufacturing, distribution, transportation and customer service functions globally.
Further, the company announced that Chris Robins will leave Newell Brands on Feb. 1 and Lisa McCarthy will assume a new role as chief operating officer of the Home & Commercial Segment.
In connection with Project Phoenix, the company expects to realize annualized pre-tax savings in the range of $220 to $250 million when fully implemented. Restructuring and related charges associated with these actions are estimated to be in the range of $100 to $130 million and are expected to be substantially incurred by the end of 2023.
Newell will provide additional details about Project Phoenix during its upcoming fourth quarter and full year 2022 earnings call on Feb. 10 2023.
“We are taking action to simplify and strengthen our organization by leveraging the scale and power of One Newell to optimize our cost structure and operate more efficiently. 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,” said Chief Executive Officer Ravi Saligram.
The restructuring plan, known as Project Phoenix, is expected to result in the elimination of approximately 13% of office positions. The company will begin reducing headcount in Q1 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements, the company said.
According to Newell, ranked No 27 in Happi’s 2023 Top 50 Report, Project Phoenix is expected to be substantially implemented by the end of 2023. It also incorporates a variety of initiatives designed to simplify the organizational structure, streamline the company’s real estate and centralize its supply chain functions, which include manufacturing, distribution, transportation and customer service. The company's intent is to transition to a unified "One Newell "go-to-market model in key international geographies and otherwise reduce overhead costs.
In addition to the corporate offices in South Deerfield, MA, Newell will also shutter offices in Boca Raton, FL.
According to the CEO, Newell’s Boca employees will work remotely and from the Miami office as business requires, and South Deerfield employees will be moved to existing spaces locally.
Candle Manufacturing & Distribution
Neither closure affects labs in South Deerfield or Boca, according to the company. In a post, CEO Saligram noted that South Deerfield distribution and manufacturing sites and retail stores will not be impacted.“Both the Home Appliances and Home Fragrance businesses remain priorities for the company,” he penned.
Newell also owns Chesapeake Bay Candle and Wood Wick Candle.
Newell will begin reducing its headcount in the first quarter 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements. Layoffs will be made in the US, Canada in LATAM initially. Newell said employees in Australia and New Zealand (ANZ) will “receive a communication” on Jan. 30 related to staffing changes.
New Operating Model
Newell Brands will implement a new operating model, 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. Additional operating segments are Learning & Development and Outdoor & Recreation. The company will report on this basis commencing January 1, 2023.Effective immediately, Mike McDermott has been named the segment CEO for Home & Commercial Solutions, which includes its home fragrance brands.
Dennis Senovich, chief supply chain officer, will lead the company’s manufacturing, distribution, transportation and customer service functions globally.
Further, the company announced that Chris Robins will leave Newell Brands on Feb. 1 and Lisa McCarthy will assume a new role as chief operating officer of the Home & Commercial Segment.
In connection with Project Phoenix, the company expects to realize annualized pre-tax savings in the range of $220 to $250 million when fully implemented. Restructuring and related charges associated with these actions are estimated to be in the range of $100 to $130 million and are expected to be substantially incurred by the end of 2023.
Newell will provide additional details about Project Phoenix during its upcoming fourth quarter and full year 2022 earnings call on Feb. 10 2023.
