In a revised fourth-quarter outlook, Newell Rubbermaid has announced several measures to cut costs and maximize cash, positioning the company for “a prolonged downturn.”
Among these actions are a wage freeze and an 8 to 10 percent reduction of salaried work force which began in 2008 and will continue next year. Newell Rubbermaid is also implementing temporary shutdowns at a number of manufacturing plants. The company said it would give further information on the locations of these facilities at its fourth quarter earnings announcement on Jan. 29, 2009.
“We are seeing extraordinary volatility, weaker than expected demand, and customer inventory reductions across virtually all geographies and market segments, with trends worsening as we near the end of our fourth quarter," said Mark Ketchum, Newell Rubbermaid’s president and CEO. "The unprecedented rapidity of the economy's decline makes it difficult to anticipate an economic rebound any time soon. Our expectations are for a more challenging business environment in 2009 than any we've seen to date.”