Thursday, March 07, 2002
P&G plan for Clairol completed
Some job cuts, plant closings, transfers
By Cliff Peale
The Cincinnati Enquirer
Procter & Gamble Co. made its plans final Wednesday for integrating the Clairol hair-care business into P&G.
P&G said it will close four Clairol plants and distribution hubs, three of them outside the United States. That will eliminate about 750 jobs.
Added to job cuts from Clairol's marketing, research and other administrative operations, Procter will cut nearly 2,200 Clairol jobs.
P&G announced the $4.95 billion deal, its biggest acquisition ever, last year.
The Clairol hair-coloring manufacturing plant in its hometown of Stamford, Conn., will remain, P&G said. Because hair coloring is essentially new for P&G, those plants were affected less than shampoo and conditioner plants.
The plant consolidation will be completed by late 2003. By then, P&G hopes to reap at least $200 million in annual cost savings, while getting the additional $1.6 billion in sales added by Clairol's brands.
The nonmanufacturing moves will add fewer than 100 jobs in Cincinnati, mainly marketing executives from Clairol hair-care brands such as Herbal Essences.
The company's new global hair-color and professional products group will remain headquartered in Stamford.
P&G plan for Clairol completed
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