NWL to Cut More Than 900 Jobs & Shut Stores, Unveils Productivity Plan

Newell Brands Inc. NWL is enhancing its operational efficiency, profitability and long-term competitiveness through disciplined execution of productivity, simplification and innovation initiatives. The company has unveiled a global productivity plan to boost competitiveness, elevate consumer value and long-term value creation. 

Under this plan, the company will lower its global workforce by more than 900 employees, which is nearly 10% of the professional and clerical employees. This will have a limited effect on the manufacturing or supply-chain functions. Professional and clerical separations in the United States are likely to occur in the current month. Such efforts will also continue across the international markets through 2026, subject to local law and consultation requirements. The initiative reinforces NWL’s disciplined execution and commitment to developing a high-performing, agile firm.

Building on its key turnaround strategy launched in 2023, the productivity plan is created to elevate the performance standards, facilitate processes, optimize overheads and redirect resources toward the highest-value operations. The plan is enabled in part by the company’s use of automation, digitization and Artificial Intelligence to streamline operations, boost decision-making and reinforce execution across functions. 

Newell will rationalize its retail footprint by shutting roughly 20 Yankee Candle stores in the United States and Canada, which together account for roughly 1% of brand sales, with closures likely to take effect in January next year. This move aligns the brand’s footprint with the modern shopping patterns and strengthens its multi-channel growth approach. Hence, Newell will be able to more effectively allocate resources toward innovation, brand development and growth initiatives amid an evolving consumer landscape.

What’s More for Newell?

As a result of the aforesaid plan, management anticipates recording pre-tax restructuring and related charges of about $75-$90 million, mainly for severance and related costs, the majority of which is to be recognized by 2026-end. When the productivity plan is fully executed, the plan is likely to yield $110–$130 million in annualized pre-tax cost savings.

We note that Newell has affirmed its earlier-issued guidance for fourth-quarter 2025 normalized operating margin, normalized earnings per share and operating cash flow. Consequently, management now expects fourth-quarter net and core sales to come in toward the lower end of its previously issued guidance range, as sales trends in Latin America continue to improve but at a slower pace than originally anticipated.

Newell’s strategic priorities remain centered on improving margins, enhancing operational efficiency and strengthening its financial position. The company continues to leverage productivity, simplification and disciplined cost management to offset macro pressures and support increased brand investment. Key initiatives include SKU rationalization, technology standardization and the deployment of AI-based tools to drive efficiency and agility. Shares of this current Zacks Rank #3 (Hold) company have gained 18.1% in the past month compared with the industry’s growth of 0.6%.

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