Company to cut 5,000 jobs, shut third of factories

Friday, Sept. 16, 2005 | 9:48 a.m.

ATLANTA -- Newell Rubbermaid Inc., maker of plastic products for the home and office, on Thursday announced a three-year plan to streamline manufacturing and cut overhead, including laying off 5,000 workers.

The maker of Sharpie pens and Rubbermaid trash cans said it plans to close one-third of its 80 factories worldwide.

The company expects to incur restructuring charges of $295 million to $340 million, beginning with $220 million to $250 million next year. When the plan is complete in 2008, Newell estimates annual savings of about $120 million.

The company currently has 31,000 employees worldwide.

Newell said it plans to increase its spending on marketing, research and development and "international growth opportunities," by $40 million in 2006 and $150 million in 2008.

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