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The Yankee Candle Company will lay off around 100 people working in distribution operations in Deerfield, Massachusetts. Corporate offices in the state and the company’s flagship store, Yankee Candle Village, are not impacted. The distribution center at 27 Yankee Candle Way will remain open and the layoffs are part of the company’s consolidation efforts, according to a spokesperson from parent company Newell Brands.
“We thank employees for their service and dedication and are committed to supporting them with transition benefits,” the spokesperson said.
A Worker Adjustment and Retraining Notification was received by the Massachusetts government in early July, stating that the layoffs will take place on Sept. 9.
A letter from the company’s senior human resources manager, Igor deMelo, to the Department of Labor said the firings are a result of the company moving part of its operations at its Deerfield facility. The company expects that the layoffs will be permanent.
“Importantly, there are no changes to our other Yankee Candle operations in Western Massachusetts,” according to the company spokesperson. “Yankee was founded in the area, and we are committed to maintaining a strong local presence with our flagship Yankee Candle Village store and various research, manufacturing, distribution and office facilities.”
Most of the company’s candles are made in Massachusetts. Yankee Candle has over 300 owned stores and a wholesale network of over 14,000 specialty retailers in the U.S., according to the company.
Parent company Newell Brands also owns Rubbermaid, Sharpie and Mr. Coffee, among other brands. In its latest quarter, Newell’s net sales were down 7.8% year over year to $2 billion. Cash flow in Q2 was $64 million, down nearly 77% from $277 million in the year prior. The company has outstanding debt of $5 billion.
At the start of the year, the company announced an “organizational realignment,” which supported a plan the company originally launched in June 2023, according to company documents. Part of that strategy includes reducing Newell’s real estate footprint and other cost-reduction initiatives. Those plans are expected to mostly be completed by the end of the year, with restructuring and related charges projected to land between $75 million and $90 million.
via https://www.aiupnow.com
Kaarin Vembar, Khareem Sudlow
