IFF Announces Strategic Initiative to Strengthen Go-to-Market Capabilities & Improve Profitability; Will Record $0.08 per Share Charge in Q4
International Flavors & Fragrances Inc. (NYSE: IFF) today announced a strategic initiative designed to strengthen the Company's global go-to-market capabilities and improve profitability. The initiative includes a realignment of responsibilities in the Fragrance Business Unit under its Group President, Nicolas Mirzayantz, and a reduction in workforce in fragrances as well as various parts of the organization.
The Fragrance Business Unit will reorganize its Functional Fragrances group to align with the global category approach used for Fine Fragrance & Beauty Care and Fragrance Ingredients. The Company will also continue to reallocate a portion of its Functional Fragrance resources from the developed markets to the emerging markets, increasing emphasis on its Singapore and Mexico creative centers.
In the fourth quarter of 2011, IFF will record a pre-tax charge of approximately $10 million, or $0.08 per diluted share after-tax associated with the elimination of approximately 70 positions globally, which is for severance and other employee-related costs. The Company expects to realize pre-tax savings of approximately $9 million in 2012.
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