Newell Brands, maker of Sharpie markers and Yankee Candle, plans to cut 900 office and clerical jobs. The company will also close 20 Yankee Candle stores in the U.S. and Canada by January 2026. These changes come from high tariffs, rising prices, and lower customer spending.
Job Cuts and Store Closures
Newell Brands announced it will remove 900 professional and clerical positions, which is about 3.8% of its global workforce. This move will cost the company $75 million to $90 million before taxes in severance payments. The average severance per job ranges from $83,000 to $100,000.
The company expects to save $110 million to $130 million each year by the end of 2026 from these cuts. Most job losses will start in the Atlanta headquarters this month and continue into 2026 in other places. Factory jobs will stay mostly safe.
Yankee Candle store closures affect only 1% of the brand’s sales, but they happen during the busy holiday gift season. Shoppers can buy from other stores or online instead. These changes aim to make the company stronger with new tech like automation and AI.
Tariff Costs Hurt Finances
Tariffs from China caused big problems for Newell Brands. A one-time $24 million hit came early in the third quarter from 125% tariffs. The full quarter tariff cost reached $55 million.
For all of 2025, tariff costs now total $180 million, up from a $155 million forecast last month. These extra costs cut into profits by about $115 million, or $0.23 per share before fixes. The company raised prices and changed suppliers to fight back.
Third-quarter sales dropped 7.4%, the worst of the year. Home fragrance like Yankee Candle and office supplies like Sharpie saw the biggest falls. Core sales in Latin America, especially Brazil, grew slower than hoped due to higher prices from tariffs.
Wider Industry Layoffs
Newell Brands is not alone in these tough times. In just three days, three big companies announced major job cuts. Algoma Steel in Ontario, Canada, laid off 1,000 workers, or 40% of its staff, due to 50% U.S. tariffs on Canadian steel.
Renfro Brands shut its plant in Fort Payne, Alabama, in late December, cutting 455 jobs with a net loss of 380. Together, these three firms let go of about 2,280 jobs in North America. Tariffs force many manufacturers to shrink staff or close sites.
Consumers feel the pinch too. People skip small luxuries like candles and markers to buy basics amid inflation and tariffs. Newell’s main sales fell 4% to 7% in the third quarter compared to last year. This drop seems long-term, not just a short slowdown.
Sales Outlook and Stock Drop
Fourth-quarter sales will fall 1% to 4%, mostly at the higher end. Full-year core sales now face a 4% to 5% drop. Stores like Walmart and Target may push their own cheap candles as Newell pulls back.
Hotels and offices that buy Newell’s scents saw a 9.8% sales drop in their segment last quarter. Rivals like BIC and SC Johnson gain space on shelves with fewer supply issues. Promotions may rise to draw holiday shoppers before prices settle.
Newell stock has fallen 63% this year, trading around $3.80 to $5.09 recently, far from its $11.78 high. Investors worry about missed profits and tariff risks. Fixes like restructuring may take 18 months, leaving workers and shareholders unsure.
Sources
Newell Brands Announces Third Quarter 2025 Results. Newell Brands Corporate Statement, December 1, 2025.
Sharpie Maker Newell Brands to Cut 900 Jobs, Take Up $90 Million Charges. Reuters, December 1, 2025.
Sharpie Maker Newell Brands Among Recent Holiday Layoffs. Manufacturing Dive, December 4, 2025.
Algoma Steel to Cut 1,000 Workers Due to Tariffs. Wall Street Journal, December 1, 2025.
Newell Brands Q3 2025 Earnings: Tariff Shock & Margin Pressure Analysis. Yahoo Finance Earnings Analysis, October 31, 2025.
Algoma Steel Statement on Tariff Impact and Restructuring. Algoma Steel Official Statement, November 30 / December 1, 2025.