By Linda Rendle, Chief Executive Officer
As I shared in September, we introduced a new streamlined operating model in service of our IGNITE strategy to make Clorox more consumer obsessed, faster and leaner.
IGNITE continues to prove itself as the right strategy. However, the world we’re operating in isn’t the same as when we designed IGNITE, given radical shifts in consumer and shopper behaviors, increasing customer demands, a new supply chain paradigm, and different needs for our teammates. This clear need for change in how teams work inspired our next step of transformation.
Being consumer obsessed helps us put consumers at the center as we innovate experiences across our brands and make decisions on the business. Being faster allows us to be more responsive and competitive, helping us win with consumers and customers. Finally, by being leaner, we focus our energy on top priorities and create the fuel to grow our business.
Today, we’re continuing this journey, making strides that move us toward our desired outcomes. This involves five major change vectors covering structure, processes and ways of working — all in service of delivering against these intents:
- Create a business unit growth culture because they’re closest to consumers and their needs, enabling growth through our powerful brands.
- Focus work and teams to ensure groups and functions are working on what creates the most value and is aligned to our most critical business priorities.
- Modernize our capabilities with the right tools, technology and data to enable deeper, real-time consumer understanding; improve speed to market; and drive efficiency through consistency and scale.
- Empower decision-makers by putting the call with those who are closest to the work.
- Transform our employer value proposition for better teammate experiences and superior business outcomes.
While I’m energized about these changes and what they enable for us as an enterprise, we did have to make some difficult decisions today with the elimination of approximately 200 positions, or roughly 4% of our nonproduction workforce. Thankfully, the total number of people impacted is less than that as we were able to redeploy some teammates to other areas of the business and close some open positions. We’re supporting our teammates through this transition, consistent with our people-centered approach.
We have the key foundational elements in place and will complete this transition over the 18- to 24-month timeframe we discussed as part of our original commitment. We’re on track to generate ongoing annual savings of approximately $75 million to $100 million, with benefits beginning this fiscal year. However, transformation isn’t a one-time event, and we’ll continue to implement changes as we execute this transformation.
As we make these important changes to our organization, we’ll continue to live by our collective purpose to champion people to be well and thrive every single day and embody our values do the right thing, put people at the center and play to win. We’re driving the growth and speed we need to create an enduring and sustainable company for ourselves, our consumers, our stakeholders and future generations.