Colgate-Palmolive Plans to Cut 4,400 Jobs

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http://biz.yahoo.com/ap/041207/colgate_cuts_3.html


Colgate-Palmolive Plans to Cut 4,400 Jobs
Tuesday December 7, 7:26 pm ET
By Anne D'Innocenzio, AP Business Writer
Colgate-Palmolive Plans to Cut About 4,400 Jobs, Close Factories As Part of Restructuring Plan

NEW YORK (AP) -- Colgate-Palmolive Co., the consumer products giant behind brands like Ajax detergent and Irish Spring soap, plans to cut its worldwide work force by about 12 percent, or about 4,400 jobs, and close one-third of its factories as part of a four-year plan aimed at boosting its sales and profits. Its stock climbed nearly 8 percent.

The moves announced Tuesday come as the consumer products industry has been grappling with higher costs in raw materials, gas and packaging, all of which have put more pressure on profits.

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In September, Colgate-Palmolive issued a rare warning that its profits would fall short of expectations as it faces tougher competition and increased expenses as it headed into the last quarter of the year.

New York-based Colgate said Tuesday it would reduce its global work force from its current level of 37,000 and close a third of its 78 factories worldwide during the course of the four-year restructuring effort. The savings from those closures would be invested in sales and marketing initiatives.

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