Newell Brands will transition to a new CEO soon after announcing a restructuring and layoffs.
The consumer goods company said in a Friday (Feb. 10) press release that President Chris Peterson is to become president and CEO effective May 16, at which time current CEO Ravi Saligram will retire.
The announcement came on the same day that the firm — which owns about four dozen well-known brands like Rubbermaid, Paper Mate and Yankee Candle — reported that its sales were down 18.5% during the quarter ended Dec. 31.
“Fourth-quarter results were in line with our expectations and brought to a close a difficult second half,” Saligram said in a separate Friday press release. “The business continued to be impacted by a tough operating environment, including slowing consumer demand for general merchandise categories, as well as inventory reductions at retail.”
The move also came about two weeks after the firm announced a restructuring program that includes reducing its number of operating segments from five to three and reducing its office headcount by 13%.
“Chris is a proven leader, who has played an integral role in Newell’s turnaround over the past four years, by strengthening Newell’s financial performance, building operational excellence and a culture of productivity, reducing complexity and transforming the company’s supply chain capabilities,” Newell Brands Chairman of the Board Patrick Campbell said in the release, adding that Peterson will lead the company “through its next chapter.”
Saligram told investors in September that Newell Brands had been experiencing “significantly greater than expected pullback” in orders from retailers and demand from consumers due to inflationary pressures.
As PYMNTS reported at the time, few companies offer a wider purview and broader portfolio of retail customers — making the company’s reduced outlook all the more serious.
Another consumer packaged goods (CPG) firm, snack and candy giant Mondelēz International, said Jan. 31 that it was dealing with higher costs that led it to raise prices.
CPG giant Procter & Gamble said Jan. 19 that it had no plans to change strategy, although it too was continuing to work through a difficult cost and operating environment.
When Newell Brands announced its restructuring Jan. 23, the firm said it aimed to reduce complexity, streamline its operating model and drive operating efficiencies, with Saligram adding that this came in response to macroeconomic pressures.
In the first Friday press release, Peterson said the restructuring will strengthen the company and unlock its full potential.
“Despite the challenging market environment, we have significant opportunity to drive profitable growth by building our core brands and taking further decisive actions to operate more effectively and efficiently,” Peterson said.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More