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Thursday, July 29, 2004

Wella, parent P&G cutting 1,500 jobs


600 to come from two U.S. plants

By Justin Fenton
Enquirer staff writer

Hair product maker Wella and its new parent, Procter & Gamble Co., said Wednesday they would cut 1,500 jobs in production and distribution as they consolidate operations following last year's merger.

Nearly 600 of the jobs will come from the United States. P&G will trim 300 employees over the next three years from a plant in Stamford, Conn., while Wella will shut down a Richmond, Va., facility that employs 280 in the next 24 to 30 months, said P&G spokeswoman Sue Hale.

Darmstadt, Germany-based Wella will cut an additional 900 jobs over the next 12 to 30 months spread across Germany, Mexico, South Korea, Indonesia, France and Australia.

"With the cooperation in the area of production and distribution, synergies should be achieved for both Wella and P&G through the bundling of each other's strengths and through the reduction of overcapacity," a Wella statement said.

The cuts "affect about 18 percent of the worldwide Wella work force in production and distribution," it said.

The cuts, the statement said, would "improve the capabilities of supply-chain structures in both organizations."

Hale said 400 jobs would be created in Mexico as production is moved to different locations.

Cincinnati-based Procter & Gamble bought Wella, which has about 17,000 employees, last year for $7 billion.

The Associated Press and Bloomberg News contributed. E-mail jfenton@enquirer.com




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