Newell Brands, the Atlanta-based company behind beloved products like Sharpie markers, Yankee Candle, and Rubbermaid, has announced a major restructuring plan as 2025 winds down. The company is feeling the pressure from falling sales, rising tariff costs, and stubborn inflation that’s squeezing profits.
Investors have watched the stock price drop this year, and now all eyes are on what management will do next. This cost-cutting move is shaping up to be a game-changer for the company and its employees.
Sales Are Down and Margins Are Shrinking
Newell’s sales dropped more than 7% year over year in the quarter that ended September 30, 2025, bringing revenue down to about $1.8 billion. This decline has squeezed profit margins and sparked urgent calls for action from shareholders.
Tariff costs have hit hard, and weak demand in North America has made things even tougher. The company is also sitting on elevated debt levels, leaving management with very little room for mistakes. These mounting pressures have forced the company’s leaders to act quickly to stabilize the business.
Newell’s Beloved Brands and Products
Newell Brands owns an impressive array of household names across writing tools, home products, and outdoor gear. From Sharpie markers used in schools and offices to Yankee Candle scents in millions of homes, from Rubbermaid food storage containers to Coleman camping gear, Newell supplies products found in big-box retailers across North America and beyond.
Contigo drinkware rounds out the portfolio. This broad range of popular brands means the company touches many aspects of daily life, making any restructuring decision significant for consumers and retailers alike.
The Perfect Storm of Business Headwinds
Over recent quarters, Newell has been hammered by softer consumer demand, cautious retailers holding off on big inventory orders, and higher costs for raw materials and labor. Tariffs alone are expected to cost the company around $180 million throughout 2025, making the financial outlook even grimmer.
Inflation and changing shopping habits are also taking their toll, especially on discretionary items like premium scented candles and luxury home goods. Management has acknowledged there’s much more work to do to turn things around and return to profitability.
When Numbers Drive Big Decisions
On December 1, 2025, Newell unveiled a global productivity plan that will eliminate over 900 professional and clerical jobs worldwide, about 10% of its office workforce. The company expects this restructuring will cost between $75 million and $90 million in pre-tax charges, mostly for severance payments.
Most of these costs will be recognized by the end of 2026. Management says the plan will simplify how the company operates and help focus resources on the most important strategic areas.
From the U.S. to Canada and Beyond
The job cuts will start in the United States, with most reductions in professional and clerical roles happening in December 2025, before rolling out internationally throughout 2026 in compliance with local employment laws. Additionally, Newell is closing approximately 20 Yankee Candle stores across the U.S. and Canada by January 2026.
While these stores only generated about 1% of Yankee Candle’s sales, their closure means visible changes in malls and shopping centers where customers have browsed candles for years.
Office Workers and Clerical Staff Face Uncertainty
The layoffs affect roughly 3.8% of Newell’s total global workforce, with office and clerical roles bearing the brunt at 10% cuts. Manufacturing and supply chain jobs are largely being spared from the cuts.
Canadian employment lawyers emphasize that affected workers may be entitled to significant severance beyond what’s initially offered, depending on their tenure and position. They’re urging laid-off employees in Canada to seek legal counsel to understand their full rights.
Other Companies Are Making Similar Moves
Newell’s restructuring fits a broader pattern across the consumer goods and manufacturing sectors, where companies are tightening their white-collar ranks as business normalizes after the pandemic boom years. Other manufacturers have recently announced layoffs tied to tariffs, automation, and efficiency drives, though not all on the same scale as Newell.
So far, U.S. regulators haven’t raised specific concerns about Newell’s plan, viewing it as a standard corporate productivity initiative rather than a major plant-closure wave that would trigger additional scrutiny.
When the Whole Economy Creates Pressure
Newell’s restructuring comes amid broader uncertainty across retail and manufacturing, as inflation continues to pressure shoppers and higher interest rates increase borrowing costs for heavily indebted companies. Newell has acknowledged that tariff impacts and changing consumer behavior are reshaping its business.
Shoppers are increasingly buying online rather than in stores, and spending on discretionary items like premium scented candles and branded drinkware has become more selective. These macroeconomic forces are making cost discipline and operational efficiency a priority across the entire sector.
$110-130 Million in Annual Savings
Beyond the headline job losses, Newell projects this productivity plan will generate $110 million to $130 million in annualized pre-tax cost savings once fully implemented. Closing the 20 Yankee Candle stores, most of which are rented locations, represents a relatively low-revenue approach to cutting costs while maintaining strong wholesale and online distribution channels.
These projected savings are central to why CEO Chris Peterson is expected to highlight them to investors. The numbers look good on paper, offering a potential path back to profitability if execution goes smoothly.
A Second Round of Job Cuts in Just Two Years
Chris Peterson, Newell’s President and CEO, has led the company’s turnaround effort since 2023 and claims the company has made meaningful progress. However, cutting 10% of office staff for the second time in as many years raises serious concerns.
The previous round eliminated 7% of office positions, and this latest announcement could damage employee morale and lead to the loss of valuable institutional knowledge and experience.
CEO and CFO Face Tough Questions from Investors
Chris Peterson, CEO, and Mark Erceg, Chief Financial Officer, are scheduled to present the restructuring details to investors at the Morgan Stanley Global Consumer & Retail Conference in New York on December 2, 2025.
This high-profile appearance gives Wall Street a direct opportunity to challenge how the job cuts align with Newell’s broader revitalization strategy and to probe whether additional organizational changes or portfolio moves might follow.
Building a Leaner, Smarter Organization
Newell’s latest actions build on a turnaround strategy launched in 2023 that focuses on raising performance standards, simplifying operations, and directing resources toward faster-growing brands.
The productivity plan is being supported by investments in automation and artificial intelligence tools to handle back-office and clerical tasks, potentially offsetting some of the lost jobs. Management hopes these changes will stabilize profit margins without disrupting core manufacturing or product development teams that keep the company’s products flowing to retailers and customers worldwide.
Skeptical Voices Question Long-Term Strategy
While the projected $110 million to $130 million in annual savings sound impressive, analysts remain skeptical about Newell’s overall outlook. The company carries roughly $4.8 billion in debt and continues to face ongoing tariff pressures.
With quarterly sales declining and discretionary product categories under heavy pressure, some financial experts question whether cost-cutting alone can spark lasting growth.
The Fourth Quarter Test and What Comes After
Newell has maintained its guidance for fourth-quarter normalized operating margin, earnings per share, and operating cash flow, but now expects net and core sales to land near the lower end of its previous predictions.
This cautious outlook underscores how fragile consumer demand truly is right now. Investors will be closely watching 2026 performance to determine whether these job cuts and store closures actually translate into improved profitability or signal that a longer, more painful reset lies ahead.
Tariffs and Trade Policy Hitting Bottom Lines
Newell’s restructuring highlights how trade and tariff policies directly impact corporate bottom lines and employment decisions. The company has warned that tariffs are expected to cost it about $180 million in 2025 alone, a massive hit that justifies aggressive cost reduction efforts.
As governments in Washington and Ottawa debate future tariff policies and trade rules, manufacturers like Newell are already reshaping their white-collar staffing levels and retail footprints to adapt and survive.
Job Cuts Spread Across Borders and Time Zones
Though Newell is headquartered in the United States, the job cuts and store closures will extend into Canada and other international markets throughout 2026, following local employment regulations. Canadian Yankee Candle locations are among those scheduled for closure in early 2026, affecting shoppers and workers north of the border.
Global staff will experience the restructuring on different timelines and under different legal frameworks for severance, notice requirements, and mandatory consultations.
Understanding Your Rights as a Laid-Off Worker
Employment lawyers in Canada emphasize that non-unionized workers affected by Newell’s cuts may be entitled to much more severance than initially offered, depending on years of service and job responsibilities. In the United States, the federal WARN Act requires advance notice for larger plant closures but may not apply to dispersed white-collar layoffs across multiple locations.
Newell’s restructuring charges of $75 million to $90 million reflect legal and contractual obligations to departing employees. Workers facing layoffs should understand that severance packages aren’t always final offers and that professional legal advice can help protect their interests and financial futures.
Malls Lose Specialty Stores as Shopping Habits Shift
The decision to close about 20 Yankee Candle stores illustrates a cultural and generational shift toward online ordering and big-box retailers over specialty storefronts. Newell says aligning its physical retail footprint with “modern consumer shopping patterns” is central to its strategy.
For shoppers who associate Yankee Candle with leisurely mall browsing and sampling fresh scents, these closures mark another symbolic step away from traditional shopping culture.
A Bellwether for How Big Companies Are Adapting
Newell’s 900-job reduction and $75–$90 million restructuring charge send a powerful message about how global brands are responding to tariffs, mounting debt, and shifting consumer demand patterns. Similar moves across the manufacturing and consumer goods sectors suggest that white-collar office jobs have become increasingly vulnerable during efficiency drives and cost-cutting campaigns.
How successfully Newell balances savings with innovation and customer service could become a bellwether for other companies weighing their own workforce restructurings.
Sources
Manufacturing Dive – “Sharpie maker Newell Brands among recent holiday layoffs”
Nasdaq / RTTNews – “Newell Brands To Reduce Global Workforce”
OICOMPASS – “Newell to cut 900 office jobs in global overhaul”
Atlanta Business Chronicle – “Newell Brands cutting hundreds of jobs, closing 20 stores”