Colgate-Palmolive (CL) Job Cuts To Continue Into 2017

Colgate-Palmolive Co. said it would look to reduce its total employee head-count by 3,300 to 3,800 jobs. The downsizing drive, now expected to continue well into 2017, was originally intended to cut roughly 2,300 jobs when it was first announced in 2012.

In a regulatory filing Thursday, the American consumer products manufacturer said it would take a pre-tax charge of $1.41 billion to $1.59 billion by the end of December 2017, up from an earlier estimate of $1.28 billion to $1.44 billion, for the restructuring program.

The company also said Thursday it would cut costs on its supply chain and focus on expanding its commercial hubs.

The New York City company, which earns about three-fourths of its revenues outside the U.S., saw its sales fall last year due to a stronger dollar, which makes its products more expensive in price-sensitive markets such as Latin America — Colgate’s biggest market by sales.

In January, the company reported sales of $3.90 billion for the quarter ending Dec. 31, down 7.6 percent compared to the same quarter the previous year. Analysts on average had expected revenue of $3.93 billion, according to Reuters.

On Thursday, the world's largest toothpaste maker also announced the resignation of Joao Pedro Reinhard from its board of directors, after he was charged with possession of cocaine in Canada earlier in February.

The company’s shares were trading flat after market hours on the New York Stock Exchange Thursday.