Colgate cuts even more jobs

Colgate-Palmolive is to continue its restructuring plan, which means even more jobs will be cut. Everything should be finalized by December 2017 and 3,300 to 3,800 jobs will have disappeared by then.

Strong dollar

Colgate had previously announced it would cut somewhere between 2,700 and 3,200 jobs. The new number shows previous estimates were rather low, which the company blames on the strong dollar as the American company gets 75 % of its turnover from outside the United States. To counter that effect, it has issued price hikes, which in turn have led to lower sales in South America, Colgate’s biggest market.

The tooth paste manufacturer expects its restructuring plan to cost 1.41 to 1.59 billion dollars (1.3 to 1.4 billion euro). The restructuring plan will also affect the company’s supply chain.