Kenvue to lay off 4% of global workforce

American consumer health firm Kenvue has announced that it is cutting approximately four per cent of its global workforce as part of a new restructuring initiative.

Kenvue said in its latest financial report that they began to enact "strategic initiatives" to enhance efficiency and better position the company for future growth.

"To further these strategic initiatives, the Company's Board of Directors approved an initiative on May 6, 2024, which anticipates a net reduction of its current global workforce of approximately four per cent and ongoing annualised pre-tax gross cost savings of approximately $350 million that will be fully realised in 2026, of which a portion will be reinvested back into the Company's brands to fuel growth," the firm said in the report.

"To achieve these savings, the Company expects to incur approximately $275 million of pre-tax restructuring costs in each of fiscal year 2024 and fiscal year 2025."

Kenvue has about 22,000 employees around the world, according to its 2023 Annual Report. It is the company behind well-known brands such as Band-Aid, Tylenol, Listerine, among others.

Paul Ruh, Kenvue's chief financial officer, added that the initiatives will enable the company to adjust its cost structure and ways of working to become more competitive.

"These initiatives will structurally position Kenvue for success in the future and create long-term shareholder value," Ruh said in a statement.

The company did not specify which employees will be affected, as well as when the layoffs will occur.

But with the announcement, Kenvue joins the growing list of employers laying off employees this year, such as Sony, Omron, among others.