TL;DR intro
- Yankee Candle will lay off approximately 100 distribution workers in Deerfield, Massachusetts.
- The layoffs are part of a consolidation effort by the company’s parent, Newell Brands.
In a significant move affecting its workforce, Yankee Candle has announced plans to lay off around 100 workers from its distribution operations located in Deerfield, Massachusetts. The decision comes as part of a wider consolidation strategy led by its parent company, Newell Brands.
According to a spokesperson for Newell Brands, while the Deerfield distribution center at 27 Yankee Candle Way will continue to operate, the layoffs are essential to aligning operations with the company's current business strategies. “We thank employees for their service and dedication and are committed to supporting them with transition benefits,” the spokesperson expressed.
The layoffs, which will take effect on September 9, were communicated to the Massachusetts government via a Worker Adjustment and Retraining Notification (WARN). The correspondence details that the affected employees will face permanent job losses due to operational restructuring at the Deerfield facility.
Igor deMelo, senior human resources manager at Yankee Candle, indicated that this move is part of a broader effort to streamline operations. "Importantly, there are no changes to our other Yankee Candle operations in Western Massachusetts," the spokesperson noted. He emphasized the company's longstanding ties to the community, affirming its ongoing commitment to maintaining a robust local presence through its flagship Yankee Candle Village store and various research, manufacturing, distribution, and office facilities in the area.
Yankee Candle remains a significant employer in Massachusetts, where the majority of its candles are manufactured. The company currently operates over 300 stores across the country and boasts a wholesale distribution network of more than 14,000 specialty retailers, reinforcing its position as a key player in the specialty candle market.
Newell Brands, the parent company of Yankee Candle, has faced challenges in the retail sector. Recently, the company reported a 7.8% drop in net sales year over year, totaling $2 billion. Furthermore, its cash flow plummeted to $64 million in the second quarter, down from $277 million in the same timeframe the previous year. Newell Brands is grappling with substantial debt, currently estimated at $5 billion.
At the beginning of this year, Newell initiated an “organizational realignment” aimed at cutting costs and optimizing its real estate portfolio. This strategy, first launched in June 2023, is primarily focused on reducing overheads and streamlining operations across its brands, which also include well-known names like Rubbermaid, Sharpie, and Mr. Coffee. Restructuring efforts are anticipated to conclude by the year's end, with the company projecting around $75 million to $90 million in related charges.
These layoffs come amidst a challenging economic environment for retailers, which have been forced to adapt to changing consumer behavior and soaring operational costs. The candle market specifically has seen fluctuations, with many consumers shifting their spending habits as they navigate financial pressures.
As Yankee Candle moves forward with this consolidation, the focus will likely remain on how to maintain its market position in a competitive landscape while also supporting its remaining workforce and local community initiatives.