Colgate-Palmolive announces job cuts

Toothpaste maker Colgate-Palmolive said today it is cutting 4,400 jobs and closing a third of its 78 factories around the world.

The group, which makes products such as Colgate toothpaste and Ajax detergent, said the move would boost profits by generating annual savings of up to $300m (€223m) after four years.

New York-based Colgate said it planned to reduce its global workforce by about 12% from its current level of 37,000, as part of its four-year restructuring plan.

The move will result in charges against earnings after tax of $550m-$650m (€409m-€484m) over the four years.

News of the restructuring came as Colgate chairman Reuben Mark announced that sales worldwide were currently “excellent”.

Colgate sells products in 223 countries around the world. Other brands include Palmolive dishwashing liquid, Irish Spring soap and Hill’s Science Diet pet foods.

The overhaul aims to improve the company’s financial performance by reducing the number of manufacturing centres with which it does business.

All purchasing – from office supplies to media outlets for advertising – will now be managed globally, the company said.

Colgate said it would accelerate marketing innovations and new products, especially in markets that it feels have high potential, such as Eastern Europe, Russia, China and parts of Latin America and Asia.

The company reported in October that its profits fell 10% in the third quarter to $329m (€245m) from $365.4m (€272.2m) last year.