EMCC European Monitoring Centre on Change

Wella AG

Company/Organisation:
Wella AG

Geographic Location

Country: World

Company

Sector: Manufacturing
Manufacture of chemicals and chemical products
20.4 - Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations
Group: Procter & Gamble

Employment Effects

Announcement Date: 29-01-2004
Planned Job Reductions min: 600
Planned Job Reductions max: 1200
Type of Restructuring: Merger/Acquisition
Employment Effect Start: 01-01-2004

Additional Information

Wella AG, producer of hair care products controlled by Procter & Gamble Co., plans to cut about 600 jobs in its cosmetics section (2,000 employees worldwide). These workers will be offered transfers to Procter & Gamble and its distributors, affecting 180 jobs in Germany. This is part of an agreement giving Wella’s parent company the right to license its products. In July 2004, announcement of around 1,200 jobs to be cut at Wella, controlled by US consumer goods giant Procter & Gamble. The job cuts will affect mainly the production and distribution activities. At least 200 jobs will be cut in Germany alone. As part of the cost cutting measures, several production plants will be closed, including the Kabadell factory in Lenzkirch. Around 100 jobs will go at Wella's plant in Hunfeld, which currently employs 1,100 staff.