Colgate to Cut 2,300 Jobs by 2016

by Christopher Freeburn | October 25, 2012 9:34 am

Colgate to Cut 2,300 Jobs by 2016

Colgate-Palmolive (NYSE:CL[1]) announced on Thursday that it plans to eliminate 2,300 jobs over the next four years[2].

The consumer products maker said the job cuts — which will pare its worldwide payroll by about 6% — were part of a restructuring program. It will record charges of between $1.1 billion and $1.25 billion relating to the layoffs.

News of the job cuts came as Colgate announced a third-quarter profit of $654 million, up from $643 million in the same period last year. Adjusted EPS was $1.38, in line with Wall Street expectations. But revenue slipped 1.2% to $4.33 billion, falling short of the $4.38 billion analysts had expected, Bloomberg noted.

Shares of Colgate slipped fractionally in Thursday morning trading.

Company officials said the cost-cutting was necessary to compete in a challenging global economy. Colgate-Palmolive employs about 38,600 workers.

A number of American companies, including Dow Chemical (NYSE:DOW[3]), Cummins (NYSE:CMI[4]) and Navistar International (NYSE:NAV[5]), have announced plans to trim their workforces[6] in the last two months. In fact, North American companies have announced 62,000 job cuts since September, the most in any two-month period since 2010.

Endnotes:
  1. CL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CL
  2. over the next four years: http://www.bloomberg.com/news/2012-10-25/colgate-to-cut-6-percent-of-jobs-in-restructuring-program.html
  3. DOW: http://studio-5.financialcontent.com/investplace/quote?Symbol=DOW
  4. CMI: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMI
  5. NAV: http://studio-5.financialcontent.com/investplace/quote?Symbol=NAV
  6. announced plans to trim their workforces: http://investorplace.com/2012/10/cummins-trims-guidance-plans-job-cuts/

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