Sharpie-owner Newell to cut 13% of office roles

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FILE PHOTO: Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City

(Reuters) – Newell Brands Inc said on Monday it will cut about 13% of its office positions, in a bid to save costs amid stubbornly high inflation that has pressured consumer spending.

The sharpie maker joins a growing list of companies in corporate America – from Wall Street Banks and tech companies such as Spotify Technology SA to online furniture retailer Wayfair Inc – that have reduced their workforce amid worries of an economic downturn.

Newell said it will begin laying off employees in the first quarter of 2023.

Shares of Newell rose about 3% to $15.51 in morning trading. They fell about 40% last year as the company struggled with weakening demand.

The company said on Monday it expects to realize annualized pre-tax savings of $220 million to $250 million when restructuring changes are fully implemented.

It estimates the restructuring and related charges to be in the range of $100 million to $130 million.

As of Dec. 31, 2021, the company employed about 32,000 people worldwide, according to a regulatory filing.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)

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