Newell announces restructuring and savings initiative, to reduce headcount in Q1

Newell Brands announced a restructuring and savings initiative, Project Phoenix. Project Phoenix is expected to be substantially implemented by the end of 2023. It incorporates a variety of initiatives to reduce overhead costs. In connection with Project Phoenix the company expects to realize annualized pre-tax savings in the range of $220M to $250M when fully implemented. Restructuring and related charges associated with these actions are estimated to be in the range of $100M to $130M and are expected to be substantially incurred by the end of 2023. The restructuring plan is expected to result in the elimination of approximately 13% of office positions. The company will begin reducing headcount in the first quarter 2023, with most of these actions expected to be completed by the end of 2023, subject to local law and consultation requirements. Newell Brands will implement a new operating model, consolidating its five operating segments into three operating segments. The company will combine its previously reported Commercial Solutions, Home Appliances and Home Solutions segments into one operating segment, Home & Commercial Solutions. Learning & Development and Outdoor & Recreation will remain as the company’s other two operating segments. The company will report on this basis commencing January 1. Effective immediately, Kris Malkoski has been named the segment CEO for Learning & Development, Mike McDermott has been named the segment CEO for Home & Commercial Solutions, and Jim Pisani has been named segment CEO for Outdoor & Recreation. Dennis Senovich, chief supply chain officer, will lead the company’s manufacturing, distribution, transportation and customer service functions globally. The company will provide additional details about Project Phoenix during its upcoming fourth quarter and full year 2022 earnings call on February 10.