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Clorox Co. said Thursday it would lay off about 200 employees as part of an ongoing restructuring to reduce its costs.
In a blog post, Chief Executive Linda Rendle said the consumer-products maker’s new streamlined operating model, introduced last September, has already proven to be “the right strategy.”
“While I’m energized about these changes and what they enable for us as an enterprise, we did have to make some difficult decisions today with the elimination of approximately 200 positions, or roughly 4% of our nonproduction workforce,” she said. “Thankfully, the total number of people impacted is less than that as we were able to redeploy some teammates to other areas of the business and close some open positions.”
It’s the second round of layoffs for the company, which last year cut about 100 jobs.
Rendle said the restructuring plan is on track to be completed between 18 and 24 months after its launch last year, and will generate annual savings of $75 million to $100 million, “with benefits beginning this fiscal year.”
She warned of the potential for more cuts ahead, though, saying “transformation isn’t a one-time event, and we’ll continue to implement changes as we execute this transformation.”
In addition to its eponymous bleach, Oakland, Calif.-based Clorox makes brands including Glad bags, Hidden Valley Ranch dressing and Burt’s Bees personal-care products
In February, Clorox beat Wall Street’s estimates for quarterly earnings and revenue, and JPMorgan analyst Andrea Teixeira praised management’s “improvement in execution and margin inflection.”
Clorox shares
CLX,
are up more than 16% year to date, and are up 10% over the past 12 months, compared to the S&P 500’s
SPX,
7.6% gain in 2023 and 6% decline over the past year.
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