Tool maker Stanley Black & Decker has cut a large number of finance jobs as it looks to save up to $200 million.
The New Britain, Connecticut-based manufacturer of power tools and lawn equipment laid off about 1,000 finance employees this week.
According to current and former employees, the finance team layoffs are part of a larger company-wide layoff that has affected thousands of workers worldwide.
The company announced ambitious cost-cutting plans in July, including $1 billion in savings by the end of next year and $2 billion in savings over the next three years.
The company, whose brands include DeWalt and Craftsman tools as well as Cub Cadet riding lawn mowers, announced that it is simplifying its structures and processes, reducing certain expenditures, and streamlining operations.
Chief Executive Donald Allan Jr. said. “These actions are necessary as we successfully navigate the current market environment.” in July
The share price of Stanley Black & Decker has dropped 60 percent since the beginning of the year, closing at $75.21 on Friday.
As per current and former employees, the company has been making significant staffing cuts across the organization since July, including the finance and information-technology departments.
According to current and former employees, this includes laying off a large portion of a global analytics team of about 200 people in early August.
Corbin Walburger, interim finance chief at Stanley Black & Decker, took over the role in July when Mr. Allan, then chief financial officer, was promoted to CEO.
Former employees said Mr. Allan’s promotion to CEO signaled a greater emphasis on employee cost-cutting, which included layoffs.
However, the magnitude of the current round of layoffs has taken employees by surprise, according to current and former staff.
Former employees said that some of those let go received an email calendar invite about 24 hours before attending a 15-minute video meeting to learn they were being let go.
Some employees did receive severance pay, depending on how long they had worked for the company.
As of January 1, Stanley Black & Decker employed roughly 71,300 people, including 10,400 temporary workers.
The company’s revenue for the three months that ended on July 2 increased 16 percent from the same period the previous year to $4.4 billion.
Stanley Black & Decker reported an $87.6 million profit during the quarter, down from a $459.5 million profit a year earlier. The company will report quarterly earnings next month.
Inventory reached $6.6 billion at the end of the second quarter, an increase of $400 million from the first.
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The company announced it would reduce finished goods manufacturing and anticipates a sequential decline in inventory.
The demand for Stanley Black & Decker products increased during the pandemic as people spent money on yard work and home improvements.
It has decreased this year as a result of high inflation and the unsteady state of the economy.
Source: The Wall Street Journal