Gillette to Lay Off 2,700, Close Factories

Gillette (G Quote - Cramer on G - Stock Picks) on Monday announced a restructuring that will result in layoffs of about 8% of the workforce and the closing of eight factories and 13 distribution centers.

The consumer products manufacturer said the moves will generate savings of more than $125 million on an ongoing basis. In addition to laying off approximately 2,700 employees, the company says it will outsource the production of "noncore" products, flatten its management structure and write off assets.

"These actions will significantly improve the company's operating efficiency," said Acting CEO Edward F. DeGraan.

The moves will result in an after-tax charge of $430 million, or 40 cents per share, in the fourth quarter. The moves are expected to be completed in 12 months.

At mid-morning, Gillette shares were up 19 cents, or 0.6%, to $33.63 on the New York Stock Exchange.