Newell Brands (NWL) announced Monday that it will lay off 900 employees, representing 3.8% of its global workforce, as part of a major restructuring effort expected to cost the company up to $90 million.

The maker of Sharpie markers and Yankee Candle products said it will also close about 20 Yankee Candle retail stores across the U.S. and Canada by January. These stores account for roughly 1% of the brand’s total sales.

Economic Pressures Driving Restructuring

Newell, like many consumer goods manufacturers, has been hit by tariff-related expenses, cooling consumer demand, and broader economic uncertainty. These pressures have weighed heavily on the company’s financial performance, prompting further cost-cutting initiatives.

The restructuring will result in pre-tax charges of $75 million to $90 million, which the company expects to recognize by the end of 2026. The latest round of job cuts targets approximately 10% of Newell’s professional and clerical workforce. As of December 31, 2024, the company employed around 23,700 people worldwide.

Savings and Sales Outlook

Newell anticipates that the restructuring will deliver annual cost savings of $110 million to $130 million once fully implemented.

However, the company cautioned that fourth-quarter net sales are now expected to decline toward the upper end of its previously forecast 1%–4% drop, citing slower-than-expected improvements in Latin America.

Prolonged Turnaround Effort

In October, Newell warned of a deeper-than-expected annual sales decline and lowered its profit outlook, blaming persistent tariff impacts and weak consumer demand.

The company has been attempting a turnaround for the past two years, but progress has been slow. Shares of Newell Brands are down 63% year-to-date, reflecting investor concerns over the company’s ongoing challenges.