Colgate-Palmolive to Reduce Work Force by 6%
On the same day that Colgate-Palmolive (NYS: CL) announced its third-quarter worldwide revenue took a 1% year-over-year dip, the company gave notice it would reduce its global work force by approximately 6% in the next four years. Colgate currently employs 38,600. That makes for 2,300 layoffs.
According to Colgate CEO Ian Cook, the job cuts are part of a plan to increase operational efficiencyÂ amid global economic uncertainty.
"We are living in a fast-changing world with many challenges including slowing economies in many countries. This program will help us to move forward from our current position of strength to continue to deliver sustained, profitable growth over the long-term," he is quoted as saying in a company press release Thursday.
Major objectives of the company's four-year "Global Growth and Efficiency Program" include expanding commercial hubs, increasing shared services such as finance and accounting, and using technology to simplify and standardize how work is done.
Colgate's European and South Pacific markets provided the biggest third-quarter revenue disappointment, with a combined 11% fall over the same period last year.
Despite the dip in Colgate's overall revenues, net income did increase by 3% over last year's third quarter.
Colgate fared better than competitor Procter & Gamble (NYS: PG) , which saw its recent quarterly net income fall by 7% year-over-year. Rival Kimbery-Clark's (NYS: KMB) net income, however, jumped by almost 20% above the same period last year.
The article Colgate-Palmolive to Reduce Work Force by 6% originally appeared on Fool.com.Fool contributor Dan Radovsky owns shares of The Procter & Gamble Company. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Kimberly-Clark and The Procter & Gamble Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.