New Britain power tool and lawn equipment maker Stanley Black & Decker Inc. — which has struggled with inflation and slowing demand following a boost in business at the start of the pandemic — has cut about 1,000 finance jobs this week as part of a larger cost-cutting initiative, according to the Wall Street Journal.
The finance layoffs are part of broader job cuts within the company “that have affected thousands of workers around the world,” the Wall Street Journal reported, citing unnamed current and former employees.
The Hartford Business Journal reported in July that Stanley was planning to implement a significant cost-cutting initiative that will would trim expenses by up to $200 million by the end of this year, $1 billion by the end of next year and $2 billion within three years.
Part of the cost-saving measures will include consolidating the company’s 120 manufacturing facilities by at least 30% and “streamlining and simplifying the organization,” Stanley said.
At the time, Stanley Black & Decker President & CEO Donald Allan Jr. said inflation, rising interest rates and significantly slower demand in late May and June were major headwinds.
“Against that backdrop, the entire organization is focused on taking the necessary steps to reduce our inventory to generate cash flow, and to resize our cost base through corporate simplification, operational optimization and supply chain transformation,” he said. “We are reprioritizing investments across our businesses and shifting resources to where we expect they will have the greatest positive impact for our customers, partners and end users. We believe these actions will ultimately create a more agile organization that can adeptly navigate the dynamic operating environment and improve our responsiveness to customer demands.”
Since that July announcement Stanley Black & Decker, which has seen its share price decline 60% since the beginning of the year, has been making significant staffing cuts across different parts of the organization, including to the finance and IT departments, the WSJ reported.
Stanley, which was buoyed during the pandemic by a boom in do-it-yourself projects as more Americans remained at home during the public health crisis, also significantly cut its 2022 earnings projections to $5 to $6 per share from $9.50 to $10.50 per share.
Stanley reported an 80% decline in second-quarter profits to $87.6 million, or 57 cents per share. Despite that decrease, revenues were up 16% on the heels of outdoor power equipment acquisitions.
