Friday, October 26, 2012

RubberMaid What a Great Name

Unfortunately the news is not as appealing.
Newell Rubbermaid To Cut Over 1,900 Jobs

Fri, 10/26/2012 - 8:32am 
Michelle Chapman, AP Business Write
NEW YORK (AP) -- Newell Rubbermaid plans to cut more than 1,900 jobs, or about 10 percent of its worldwide workforce, over the next two and a half years as the consumer products company reorganizes its operations in a bid to boost profitability.

The company, known for Sharpie pens and its namesake containers, said Friday that its business will be restructured under two groups, a development organization and a delivery organization.

The announcement came as the Atlanta-based company reported third-quarter adjusted results that topped Wall Street's expectations. Newell Rubbermaid also raised its quarterly dividend by 50 percent to 15 cents per share.
Now the kicker.  The bean counters at the top have a great idea.  Spit the company between product design and development and product delivery.  And guess which side the b@st@rd has chosen for himself?  How many times have we seen iconic brands destroyed because management has thought R&D was an expense and not an investment?  Here's what the Manufacturing Net article says:
Newell Rubbermaid Inc. said development organization will include segments such as tools, commercial products, writing, baby and parenting, home solutions and specialty. These six segments are down from the company's previous nine.

The group will also house Newell Rubbermaid Inc.'s marketing, design, insight, research and development and corporate development staff.
Mark Tarchetti, previously head of global corporate strategy at Unilever, will lead the development organization. He will join Newell Rubbermaid in January and serve as chief development officer.
The delivery organization will include the company's general management, supply chain, customer and channel development employees.
Epic Fail.  

1 comment:

TJandTheBear said...

Mish had something the other day about a very large number of mass layoffs. Winter's coming...