Colgate to Cut 2,000 Positions, Close Factories

Colgate-Palmolive Co. said Thursday that it will cut about 2,000 jobs, or 8% of its work force, and close or alter more than two dozen factories worldwide to keep profit on track.

The consumer products giant said the actions will result in a one-time after-tax charge of $243 million, or $1.81 per share, in the third quarter, producing a loss.

The changes will be put into effect over the next three years, and the savings should begin to be realized in 1992, it said.

The company, with annual revenue of $5.7 billion, makes such well-known products as Colgate toothpaste, Ajax cleanser and Irish Spring soap.

Twenty-five of the company’s 91 plants worldwide will be closed or reconfigured, shrinking its 25,000-person work force by about 2,000.

For example, the company will transfer Canadian production of powder detergents, liquid cleaners and bar soap to the United States, but it will keep production of other household and personal care products in Canada.

It plans to close plants in Queluz, Portugal, and Liege, Belgium, and shift many Australian operations to a new facility in Queensland.

The changes will take advantage of growth in Europe and North America as well as updated manufacturing techniques, the company said.

“We are further rationalizing Colgate-Palmolive’s commercial organizations and manufacturing facilities globally to help ensure continuance of the company’s double-digit annual profit increases,” said Chairman Reuben Mark.

Over the past six years, the company said its per-share earnings increases have averaged 17%. For the first six months of this year, it earned $184.6 million, or $1.31 per share, on revenue of $3 billion.

Colgate-Palmolive stock closed down 62.5 cents at $39.625 on the New York Stock Exchange.