Colgate-Palmolive to cut more jobs under extended restructuring programme
11 Mar 2016
Colgate-Palmolive is planning to cut more jobs under an extended restructuring programme.
Colgate-Palmolive Co said yesterday, it would cut more jobs under an extended restructuring programme as the world's largest toothpaste maker sought to get to grips with tough macro-economic conditions, including a strong dollar.
The programme, now expected to end in December 2017, would see the reduction of 3,300 to 3,800 positions globally.
Colgate, had said earlier, it expected to complete the programme this year and cut about 2,700 to 3,200 positions.
The company, which drew over three-fourths of its revenue from outside the US, had been increasing prices to counter the impact of the stronger dollar, which had hit volumes in regions such as Latin America, the company's biggest market by sales.
Colgate said yesterday, it would take pre-tax charges of $1.41 billion to $1.59 billion by the end of December 2017, up from the earlier $1.28 billion to $1.44 billion it had estimated under the original program.
The company further said it would cut costs on its supply chain and focus on expansion of its commercial hubs.
Colgate's shares stayed flat at $68.23 in after-hours trading yesterday.
Meanwhile, Pedro Reinhard resigned from Colgate-Palmolive Company's Board of Directors. In a separate communication the company said that it increased the ongoing quarterly common stock cash dividend by 3 per cent.
The implementation of the restructuring programme had been approved by the company's board.
These pretax charges are currently estimated to be comprised of the following: employee-related costs, including severance, pension and other termination benefits (50 per cent); asset-related costs, primarily incremental depreciation and asset impairments (10 per cent); and other charges, including contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities (20 per cent) and the implementation of new strategies (20 per cent).
.webp)
