Newell Brands, the maker of Yankee Candle and other popular brands, has announced its plan to close dozens of stores and cut more than 900 jobs.
About 20 Yankee Candle stores in the United States and Canada will shutter in January as part of the company’s new global productivity plan, which builds on its “turnaround strategy” that began in 2023. These stores make up only about 1 percent of Yankee Candle sales.
Newell Brands said in a Monday press release that the decision “aligns the brand’s footprint with modern consumer shopping behaviors and supports its multi-channel growth strategy.”
The company, which also makes Rubbermaid and Sharpie products, said it would also cut its global workforce by more than 900 employees, about 10 percent of professional and clerical workers. Job cuts in the U.S. are expected to mostly occur in December.
“We’ve made meaningful progress executing our strategy and strengthening Newell Brands, but there is more work to do,” CEO Chris Peterson said in the release.
The executive continued: “This productivity plan is about taking the next, disciplined step to enhance efficiency, sharpen our strategic focus, and deliver stronger, more consistent performance. Ultimately, our goal is to deliver greater value for consumers and create sustained long-term value for our shareholders.”
One of the goals of the new plan is to “strengthen the company’s competitiveness,” the company said.
Shares of Newell Brands have fallen nearly 62 percent this year, and in October, the company reported third-quarter net sales of $1.8 billion, a 7.2 percent decrease from the previous year, CBS’s Money Watch reported.
Newell Brands’ new plan includes the use of artificial intelligence to “simplify operations.” The company said the job cuts will have “limited impact on manufacturing or supply chain operations.”
The changes would cost up to $90 million, primarily for severance, according to the company. But Newell Brands said it would make up to $130 million annually once its plan was fully implemented.