Why Newell Brands (NWL) Is Up 10.1% After Announcing Major Global Cost-Cutting and Workforce Reduction

• Newell Brands recently announced a global productivity plan involving a 10% reduction in its workforce and closure of approximately 20 stores worldwide, aiming for US$110 million to US$130 million in annualized cost savings by 2026 with anticipated restructuring charges of US$75 million to US$90 million.
• This restructuring is part of the company's turnaround efforts focused on automation, digitization, and streamlining operations to drive future efficiency improvements.
• We'll now explore how Newell Brands' major cost-cutting initiative could influence its investment narrative and longer-term outlook.

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Newell Brands Investment Narrative Recap

For someone to be a shareholder in Newell Brands, belief in the company’s ability to reverse ongoing revenue declines through its turnaround strategy is essential. The recent global productivity plan, with a 10% workforce reduction and about 20 store closures, directly supports Newell’s commitment to cost savings, a key short-term catalyst, but does not materially change the company’s most important risk: persistent category softness and core sales declines. The immediate impact is primarily operational, with future results hinging on the effectiveness of these measures in stabilizing sales.

Among recent announcements, the Q3 earnings report is especially relevant. While year-over-year sales declined, Newell returned to profitability on a net income basis, highlighting both the challenge and potential for improvement if cost reductions translate to lasting bottom-line gains. These efforts are central to addressing revenue risk, yet investors must continue to monitor whether operational efficiencies can be sustained as market conditions evolve.

By contrast, investors should also be aware that heavy reliance on tariff advantages and global trade policy shifts could pose a material challenge if current cost structures are disrupted by factors outside Newell’s control...

Read the full narrative on Newell Brands (it's free!)

Newell Brands' outlook anticipates $7.6 billion in revenue and $482.4 million in earnings by 2028. This assumes a 1.0% annual revenue growth rate and a $725.4 million increase in earnings from current levels of -$243.0 million.

Uncover how Newell Brands' forecasts yield a $5.18 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Newell’s fair value from US$5.18 up to US$19.81, showing broad disagreement. Persistent category weakness and revenue risk remain top of mind as you compare these sharply different outlooks.

Explore 6 other fair value estimates on Newell Brands - why the stock might be worth over 5x more than the current price!

Build Your Own Newell Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Newell Brands research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Newell Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Newell Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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