Col­gate ex­tends re­struc­tur­ing pro­gram, to cut more jobs

The Pak Banker - - COMPANIES/BOSS -

Col­gate-Pal­mo­live Co said on Thurs­day it would cut more jobs un­der an ex­tended re­struc­tur­ing pro­gram as the world's largest tooth­paste maker grap­ples with tough macro- eco­nomic con­di­tions, in­clud­ing a strong dol­lar.

The pro­gram, now ex­pected to end in De­cem­ber 2017, will re­sult in the re­duc­tion of 3,300 to 3,800 po­si­tions glob­ally.

Col­gate, had ear­lier said it ex­pected to com­plete the pro­gram this year and cut about 2,700 to 3,200 po­si­tions.

The com­pany, which gets more than three-fourths of its rev­enue from out­side the United States, has been rais­ing prices to counter the im­pact of the stronger dol­lar.

But that has hit vol­umes in re­gions such as Latin Amer­ica, the com­pany's big­gest mar­ket by sales.

Col­gate said on Thurs­day it would take pre-tax charges of $1.41 bil­lion to $1.59 bil­lion by the end of De­cem­ber 2017, up from the pre­vi­ous $1.28 bil­lion to $1.44 bil­lion it had es­ti­mated un­der the orig­i­nal pro­gram.

The com­pany also said it would cut costs on its sup­ply chain and fo­cus on ex­pand­ing its com­mer­cial hubs. Col­gate's shares were flat at $68.23 in af­ter- hours trad­ing on Thurs­day.

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