Yankee Candle, one of the most recognizable names in home fragrance, is about to shrink its footprint. Parent company Newell Brands has unveiled a restructuring plan that will cut more than 900 office jobs worldwide and close around 20 Yankee Candle stores across the United States and Canada, starting in January 2026. The move comes as the company wrestles with falling sales, rising costs, and a broader corporate push to streamline operations during a year already marked by heavy job losses across multiple industries.
Layoffs and Store Closures
Newell’s announcement in early December 2025 details a plan to eliminate more than 900 professional and office positions globally and shut down roughly 20 Yankee Candle locations in North America. The company estimates it will spend between $75 million and $90 million on severance, legal obligations, and shutdown costs tied to the restructuring. In return, it expects to generate annual savings of about $110 million to $130 million once the changes are fully implemented.
Executives say the cuts are focused on office and retail roles, with minimal impact expected on manufacturing plants and supply chain operations. That means Yankee Candle’s production capacity should remain intact even as its number of stores and corporate staff shrinks. While the closures account for only a small share of the brand’s total North American presence, Newell has not yet disclosed which specific stores will be affected, leaving employees and local communities uncertain about their future.
From Craft Startup to Corporate Division
Yankee Candle’s transformation from a small New England candle maker to a mass-market staple has unfolded over more than five decades. Founded in Massachusetts in the late 1960s, the company gradually expanded from local sales to a nationwide chain, with products eventually lining shelves at retailers such as Target, Walmart, and specialty home goods outlets.
In 2016, Yankee Candle was absorbed into Newell Brands as part of a larger acquisition, joining a portfolio that includes household names like Rubbermaid, Sharpie, Coleman, and Mr. Coffee. That deal tied Yankee Candle’s fortunes to Newell’s broader corporate strategy. Decisions about staffing, store counts, and channel mix are now made in the context of a sprawling consumer products group under pressure to lift profitability and manage debt.
Mounting Financial and Market Pressures
The latest cuts follow a period of weaker performance for Newell. In its recent financial filings, the company reported a 7 percent decline in sales compared with the prior year, even after cost-cutting efforts. Management has warned investors that additional restructuring steps are likely as it responds to shifting consumer behavior and higher operating expenses.
Several forces are straining the business. Shoppers have been pulling back on discretionary purchases, including home décor and scented products. At the same time, competition in home fragrance has intensified, with chains such as Bath & Body Works, private-label offerings from big-box retailers, and a growing number of online-only sellers all vying for the same customers. Newell has also highlighted tariffs as a major headwind, estimating about $180 million in extra tariff-related costs in 2025 versus 2024. Those added expenses have pushed the company to recalibrate its store base and overhead in order to protect margins.
A Tough Labor Market Backdrop
Newell’s restructuring lands in a year that analysts say is one of the worst for job cuts since the 2008–2009 financial crisis. Outplacement firm Challenger, Gray & Christmas has reported monthly job-cut tallies in 2025 that have, in some months, topped 150,000 positions across American employers. That wave includes technology, retail, manufacturing, and white-collar roles, contributing to an environment where unemployment rates may appear moderate, but landing a new job often takes longer than in previous years.
For Newell staff and Yankee Candle store workers, the timing intensifies the strain. Many are losing jobs just as holiday expenses rise and families face year-end financial obligations. Severance packages are expected to cushion the blow for some employees, but labor specialists say that midcareer workers in particular may face a slow and difficult search for comparable positions in the current climate. In international markets, the pace of cuts will be shaped by local labor laws, notice requirements, and union consultation rules, adding complexity and stretching the process into 2026.
Evolving Retail Strategy and Future Outlook
Behind the closures is a broader shift in how consumers shop for home fragrance and how brands choose to reach them. Newell describes its plan as a retail optimization, emphasizing that it is focusing on shutting locations where in-person traffic has declined and more purchases have migrated to e-commerce or wholesale channels. Many rivals have already leaned into online sales and partnerships with large retailers rather than maintaining extensive networks of mall-based specialty stores.
For Yankee Candle, that raises questions about what happens to a brand built in part on the in-store ritual of browsing seasonal scents and sampling fragrances. As the number of stand-alone stores falls, the company will rely more heavily on digital platforms, wholesale accounts, and shop-in-shop displays to keep its products visible and maintain customer loyalty. At the same time, Newell leadership, under CEO Chris Peterson since 2023, is pursuing a wider turnaround agenda centered on simplifying the business, reducing debt, and investing in automation and artificial intelligence to drive efficiency.
The current round of cuts signals that the company is willing to endure short-term disruption for the promise of longer-term savings. Investors typically reward aggressive cost reductions, but the impact on employees, store communities, and brand culture will unfold over time. Analysts will watch upcoming sales reports and profit margins to see whether eliminating 900 jobs and closing 20 stores is enough to stabilize Yankee Candle and support Newell’s broader turnaround, or whether deeper changes will be needed if consumers continue to limit spending on nonessential home goods.
Sources CBS News – “Yankee Candle maker Newell Brands to close stores and cut 900 jobs” – Dec. 2, 2025
TheStreet – “55-year-old iconic candle company closing stores, layoffs pending” – Dec. 3, 2025
Newell Brands – “Newell Brands Announces Third Quarter 2025 Results” – Oct. 30, 2025
WFMJ – “Yankee Candle closing 20 stores in restructuring plan” – Dec. 4, 2025
Fox Business – “Newell Brands to close Yankee Candle stores, cut jobs” – Dec. 2, 2025