Colgate to Slash 12 Percent of Jobs to Increase Profit

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Colgate-Palmolive Co. will cut about 4,440 jobs, or 12 percent of its workforce, and close a third of its factories worldwide to reduce costs amid rising competition with Procter & Gamble Co. The New York- based toothpaste maker expects to take charges of about $45 million in the fourth quarter. Colgate said it will meet analysts’ estimates for fourth-quarter earnings, excluding the restructuring costs.


Last quarter, the company had its first drop in quarterly profit in eight years, partly because Colgate was slower than Procter & Gamble to release new toothpastes, experts said. Moving production into fewer factories will help cut costs by about $250 million to $300 million annually in four years and some of the savings will be invested in advertising and new products, the company said.


Colgate was forecast to earn 58 cents a share in the fourth quarter, the average estimate of 18 analysts surveyed by Thomson Financial.

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