Yankee Candle maker Newell Brands to close stores and cut 900 jobs

Newell Brands, the company behind popular brands like Sharpie and Yankee Candle, has announced a significant workforce reduction as part of its cost-cutting measures. The company is laying off over 900 employees, which accounts for approximately 10% of its total workforce. In addition to the layoffs, Newell also revealed plans to close around 20 Yankee Candle stores in the United States and Canada early next year.

The decision to downsize comes as Newell Brands faces challenges in the market, with its shares falling by nearly 62% this year due to slowing growth. In response, the company initiated a turnaround plan in 2023 to drive sales and improve its financial performance. As part of this plan, Newell intends to leverage automation and artificial intelligence to enhance productivity.

Chris Peterson, the president and CEO of Newell Brands, emphasized the importance of the productivity plan in strengthening the company’s strategic focus and overall performance. He acknowledged that while progress has been made, there is still more work to be done to achieve sustained success.

Despite reporting third-quarter net sales of $1.8 billion, representing a 7.2% decline from the previous year, Newell Brands saw a turnaround in net income, which rose to $21 million compared to a net loss of $198 million in the same period. The company aims to realign its operations to align with evolving consumer shopping behaviors.

While Newell did not disclose the specific locations of the Yankee Candle stores that will be closed, the company anticipates charges of up to $90 million to cover severance costs and store closures. However, the cost-saving measures are projected to generate long-term savings of up to $130 million.

In a challenging environment where consumer goods companies are facing increased costs from tariffs and subdued consumer demand, Newell Brands is taking proactive steps to streamline its operations and drive efficiency. The company’s strategic initiatives underscore its commitment to adapting to market dynamics and delivering sustainable growth.

As Newell Brands navigates these changes, stakeholders will be closely monitoring the impact of the layoffs and store closures on the company’s performance and future prospects. With a focus on enhancing efficiency and sharpening its strategic focus, Newell Brands is positioning itself for long-term success in the competitive consumer goods industry.