Workers at Yankee Candle are bracing for job losses and store closures as parent company Newell Brands moves ahead with a major global restructuring that will cut roughly 900 positions and shut about 20 dedicated candle shops. The overhaul, aimed at saving up to $130 million a year before taxes, underscores how inflation, high borrowing costs, and shifting shopping habits are pressuring household-name retailers to slim down and rethink how they reach customers.
Restructuring to Cut Costs and Protect Margins
Newell Brands unveiled its new productivity plan on December 1, 2025, after several quarters of weaker sales and persistent margin pressure.
Company leaders have cited tariffs, inflation, and changes in consumer demand as key reasons for the shake-up, arguing that the restructuring will streamline operations and support a more efficient, multichannel growth strategy.
The plan will involve an estimated $75â$90 million in severance and related restructuring costs but is expected to generate between $110 million and $130 million in annual pre-tax savings once complete.
Internally, staff were told the cuts amount to nearly 10% of Newellâs professional and clerical workforce worldwide, as the company targets office roles and support functions rather than large-scale manufacturing reductions.
Executives are also responding to pressure from a sizable debt load and limited visibility into future demand, after Newell reported a year-over-year net sales decline of just over 7% in the third quarter of 2025.
Impact on Yankee Candle Stores and Shoppers
For Yankee Candle, one of Newellâs most recognizable brands, the plan means closing about 20 of its roughly 240 retail locations across the United States and Canada.
These shuttered stores represent around 1% of Yankee Candleâs total sales, but the impact will be felt locally in malls and outlet centers where the chain has long been a staple.
Customers who prefer to sample scents in person may now have to travel farther, shift to online ordering, or rely more on big-box and specialty retailers that stock Yankee Candle products.
Newell emphasizes that most Yankee Candle stores will remain open and that the brand will continue to be available online and through partner retailers, in line with its goal of aligning operations âwith how consumers shop today.â
The closures also reflect broader shifts in North American retail, where tariffs and trade disruptions have reshaped sourcing costs for candles, glass containers, fragrance oils, and packaging, influencing decisions about which storefronts remain viable.
Jobs Lost in a Difficult Labor Market
Around 900 Newell employees worldwide are expected to lose their jobs under the plan, with reductions beginning in the United States in December 2025 and extending to other countries into 2026.
The cuts will primarily affect professional and clerical positions, including staff in regional offices and corporate functions, while the company anticipates limited direct impact on manufacturing and supply chain operations.
Store associates at closing Yankee Candle locations and office workers in affected departments face immediate uncertainty over severance, benefits, and the timeline for transition.
These job losses arrive during what analysts describe as the most challenging layoff environment since the late 2000s, with announced U.S. job cuts in 2025 surpassing one million and ranking among the highest totals since the Great Recession.
Policymakers tracking employment in retail and manufacturing sectors may view Newellâs actions as one example of how tariffs, elevated interest rates, and company-level cost-cutting are weighing on hiring and job security.
Shifting Consumer Choices and Competitive Pressures
The restructuring comes as shoppers increasingly reassess discretionary purchases, including premium candles and other home-fragrance items.
Newell has already raised some prices to offset higher costs tied to tariffs and inflation, even as consumers seek promotions, trade down to cheaper alternatives, or delay what many now categorize as non-essential spending.
With fewer dedicated Yankee Candle stores, rival brands sold in large chains, discount outlets, and online marketplaces are positioned to capture some of the displaced demand.
Private-label and value-oriented candles, as well as diffusers and do-it-yourself fragrance projects, are emerging as substitutes for households trying to manage budgets without abandoning small luxuries altogether.
At the same time, a pullback by a prominent mall brand feeds into ongoing debates about the future of brick-and-mortar shopping, mall vacancies, and the environmental footprint of products such as paraffin-based candles and their packaging.
Retail landlords losing a Yankee Candle tenant, particularly in weaker centers, may struggle to quickly fill the space, while nearby independent candle boutiques and fragrance shops could see an uptick in walk-in traffic.
What the Cutbacks Signal for Retailâs Next Phase
Newellâs decision to close stores and eliminate hundreds of jobs is being closely watched by investors, competitors, and workers as a signal of how consumer-goods companies are adapting to slower growth and higher costs.
For investors, the plan is an attempt to stabilize margins, reduce the strain of multibillion-dollar debt, and reposition the portfolio for a market where more purchases happen online and through large retail partners.
For workers and communities tied to Yankee Candle stores and Newell offices, the consequences are immediate, with layoffs and storefront closures adding to a crowded job market and challenging local retail landscapes.
For shoppers, the changes may mean carefully timed purchases, hunting for clearance sales at affected locations, and rethinking where and how they buy home-fragrance products in 2026 and beyond.
As Newell tests whether up to $130 million in annual savings can revive growth without distancing loyal customers, the response from consumersâwhether they keep spending, switch brands, or cut back furtherâwill help shape the next chapter for Yankee Candle and for retail restructuring more broadly.
Sources
Retail Dive NovâDec 2025 coverage of Newell Brands layoffs and Yankee Candle closuresâ
Reuters Dec 1 2025 report on Newell Brands 900 job cuts and costâsaving planâ
USA TODAY Dec 1 2025 article on Yankee Candle store closures and job lossesâ
Parade Dec 2025 coverage on Yankee Candle closures and consumer behavior shiftsâ
Newell Brands Q3 2025 earnings release and related investor materialsâ
Fast Company Dec 4 2025 article on Yankee Candle store closures and retail trendsâ
CNBC and Challenger 2025 layoff data and analysis on U.S. job cutsâ