Newell Brands Announces Organizational Realignment; Plans To Reduce Its Office Roles By ~7%, With Most Of These Actions Expected To Be Complete By The End Of 2024; Expect Annualized Pre-tax Savings Of $65M-$90M, Net Of Reinvestment
Portfolio Pulse from Benzinga Newsdesk
Newell Brands (NWL) announced an organizational realignment aimed at strengthening its commercial capabilities and reducing overhead costs. The plan includes a 7% reduction in office roles by the end of 2024, with expected annualized pre-tax savings of $65M-$90M, net of reinvestment. The realignment supports the 'Where to Play / How to Win' strategy introduced in June 2023. Restructuring charges are estimated to be $75M-$90M, with savings of $55M-$70M expected in 2024. Additional details will be shared in an SEC Form 8-K and during the Q4/full-year 2023 earnings call on February 9, 2024.
January 08, 2024 | 1:45 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Newell Brands is undergoing an organizational realignment to enhance commercial capabilities and reduce costs, expecting to save $65M-$90M annually post-reinvestment. The company will reduce office roles by 7% by end of 2024, with restructuring charges of $75M-$90M.
The organizational realignment is a strategic move to improve Newell Brands' efficiency and profitability. The expected cost savings and the reduction of complexity in operations are likely to be viewed positively by investors in the short term, potentially leading to an increase in the stock price. However, the costs associated with restructuring may temper some of the immediate positive sentiment.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100