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Toothpaste
maker Colgate-Palmolive is to cut 4,440 jobs and shut a third of its 78
factories worldwide in a bid to boost profits.
The US firm said the move - which will affect 12% of staff - is
expected to lead to annual savings of $250-$300m (￡128m-￡154m) after four
years.
The restructuring will cost the firm $550m-$650m in charges over the
period.
Colgate added that fourth quarter and 2005 profits, excluding the
charges, will match expectations.
Colgate's last quarter recorded the first drop in
quarterly profit in eight years after chairman and chief executive Reuben
Mark spent more on marketing to fend
off
Procter & Gamble, the maker of rival toothpaste
Crest.
The company is now focusing on cutting costs to enable it to spend more
on product and marketing innovation.
It aims to make savings by purchasing all goods and services, including
office supplies and advertising, globally, thus gaining benefits from
buying in bulk.
Shares in US-based Colgate rose more than 5% to $48.99 in Tuesday
afternoon trading in the US.
The company sees particular potential for its products, which also
include Palmolive washing up liquid and Ajax cleaner, in emerging markets
like Eastern Europe, Russia, China and parts of Latin America and Asia.
It has yet to disclose which of its factories will be affected by
the closures.
(Agencies) | 
Updated: 2004-12-08 11:06
