Newell Brands has announced an organizational realignment to strengthen its front-end commercial capabilities, such as consumer understanding and brand communication. This move is part of the company’s Where to Play / How to Win choices, which were unveiled in June 2023. The realignment aims to improve accountability, unlock operational efficiencies, reduce complexity, and free up funds for reinvestment. Newell is implementing a brand management model within three existing global segments with full P&L ownership and four regional go-to-market commercial organizations.
The realignment will involve several changes, including setting up a cross-functional brand management organization, realigning business unit finance to support the new global brand management model, simplifying and standardizing regional go-to-market organizations, and centralizing domestic retail sales teams, digital technology teams, business-aligned accounting personnel, Manufacturing Quality teams, and Human Resources functions into appropriate center-led teams. The company will also optimize its real estate footprint and pursue other cost reduction initiatives.
Once these changes are fully executed, the company expects to realize annualized pre-tax savings in the range of $65 million to $90 million, net of reinvestment, with $55 million to $70 million expected in 2024. Restructuring and related charges are estimated to be $75 million to $90 million and are expected to be substantially incurred by the end of 2024. The company plans to reduce its office roles by approximately 7%, with most of these actions expected to be completed by the end of 2024, subject to local law and consultation requirements.
For more information, visit the Newell Brands Website.
