Colgate-Palmolive (NYSE:CL) announced on Thursday that it plans to eliminate 2,300 jobs over the next four years.
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), Cummins (NYSE:CMI) and Navistar International (NYSE:NAV), have announced plans to trim their workforces 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.