Colgate to cut 2,300 jobs
Colgate-Palmolive, the world's largest toothpaste maker, will cut its global workforce by 6 per cent, or about 2,300 jobs, as part of a four-year restructuring plan aimed at cutting costs amid slowing economies.
By 2016, the plan will result in charges of $1.1 billion to $1.25 billion (€960 million) before taxes, the New York-based company said today in a statement. The company currently has 38,600 employees.
Chief executive officer Ian Cook is working to boost profit by reducing structural costs, improving the supply chain and increasing the use of global data and analytic capabilities.
"We are living in a fast-changing world with many challenges including slowing economies in many countries," Mr Cook said today in the statement.
Colgate was little changed at $106.56 yesterday in New York. The shares had gained 15 per cent this year.
The restructuring is expected to save $365 million to $435 million annually by the fourth year, Colgate said.
The company said the plan will involve moving single- country subsidiaries into regional divisions and will focus on manufacturing and global warehouse networks to reduce costs.
Last year, 18 per cent of Colgate's revenue came from North America, with 29 per cent from Latin America and 21 per cent from its Europe and South Pacific region. Third-quarter sales fell 11 percent in Europe and the South Pacific and rose 2.5 percent in North America,
Colgate said today. Net income in the third quarter rose 1.7 percent to $654 million, or $1.36 a share, from $643 million, or $1.31, a year earlier, Colgate said.