The manager is rebuilding the consumer goods company.
(Photo: Henkel)
Carsten Knobel is not to be envied: the Henkel boss has been criticized for holding on to business in Russia for too long. In a recent profit warning, he conceded that rising raw material costs and leaky supply chains are having a greater impact on the Persil manufacturer than expected. And on Thursday, Knobel also had to announce that at least 2,000 jobs would be cut because he was restructuring the group.
Knobel is merging the solidly running detergents and cleaning agents business with its Persil and Pril brands and the cosmetics division, which has been suffering for years from being too small and lacking high-margin products such as high-quality face creams.
Knobel not only expects synergies from the new structure, but also growth and more negotiating power with retailers. Company observers doubt this benefit, however. For them, the conversion is a defensive measure that primarily affects costs, but does not necessarily increase revenues.
Knobel is considered too hesitant
For a liberation, Knobel would have to take tougher action. Analysts have long recommended strengthening the cosmetics division significantly or selling it entirely. Instead, Knobel only sells a few badly performing brands, and despite solid finances he has not yet managed to make any powerful purchases.
Top jobs of the day
Find the best jobs now and
be notified by email.
Observers are also advising the manager to split up the two newly emerging company divisions of consumer goods and adhesives – just as Siemens has successfully done. But Knobel also repeatedly excludes that.
>>> Read more: Persil manufacturer Henkel wants to lay off more than 2,000 employees – especially in management
In the industry, the manager is considered too hesitant – as he first proved when he left Russia and now with his restructuring plans. The traditional company needs clearer decisions in order to be able to position itself for the future in difficult times.
Future business figures will show whether Knobel is on the right path.
More: Henkel expects less profit – costs increase by two billion euros, share collapses