Newell Rubbermaid to Cut Work Force by 10% Over 2.5 Years

Newell Rubbermaid (NYSE: NWL  ) , the company behind such beloved brands as Graco, Sharpie, Paper Mate -- and of course Rubbermaid -- on Friday announced a plan to reorganize itself into six divisions:

  • Tools: Irwin and Lenox tools and Dymo industrial
  • Commercial Products: Rubbermaid Commercial Products and Rubbermaid Healthcare
  • Writing: Sharpie, Paper Mate, Expo, Prismacolor, Parker and Waterman
  • Baby & Parenting: Graco, Aprica and Teutonia
  • Home Solutions: Rubbermaid, Calphalon, Levolor, Kirsch and Goody
  • Specialty: Bulldog, Ashland, Shur-Line, Dymo office, Endicia and Mimio

In the process, the company plans to shed some 1,900 jobs globally over the next two-and-a-half years, slightly more than 10% of its work force.

Rubbermaid bills the reorganization-cum-layoff as a means of improving profitability by cutting  $180 million to $225 million in annual costs. To accomplish this, the firm plans to incur $225 million to $250 million in total restructuring costs between now and the second quarter of 2015.

Rubbermaid's Q3 earnings reports, also released Friday, featured a 0.9% decline in sales year over year, alongside a $0.37-per-share profit -- a reversal of last year's Q3 $0.61 loss. The company also raised its dividend to $0.60 per year, for a dividend yield of 2.9%.

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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