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GILLETTE REALIGNING WORLDWIDE OPERATIONS

This article was originally published in The Rose Sheet

Executive Summary

GILLETTE REALIGNING WORLDWIDE OPERATIONS across all business units over the next two years to "compete more effectively in a global arena," the firm announced Jan. 10. In a move to increase operating efficiency, Gillette will shift manufacturing facilities from multiple product type production to single product type production. Gillette noted that this conversion was prompted by the relaxing of trade barriers over the past several years, which reduces a manufacturer's need to produce a broad range of products in each market. Also, the firm will eliminate some warehouses and sales centers and will integrate its computer networks. Gillette will take a $164 mil. after-tax charge to earnings in the fourth quarter of 1993 to pay for the reorganization initiative.
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