Colgate-Palmolive announced today that it would eliminate approximately 4,400 jobs and close one-third of its factories world wide within the next four years. This represents approximately 12 percent of the company's employees world-wide.

In a statement, the company said, 'It is anticipated that the net impact of the restructuring/business-building plan will reduce the number of employees globally from the current level of 37,000 by approximately 12 percent.'

The company hopes to make itself more efficient and to modernize its remaining factories even while closing a large number of factories down. 'Finished products for the 223 countries in which Colgate does business will be sourced from fewer, more sophisticated global and regional state-of-the-art manufacturing centers,' the company indicated.

The company hopes to save between $250 million and $300 million per year by making these changes. Increased efficiency and increased profits and savings are also long-term goals.

Ruebin Mark, the chairman of Colgate said, 'We have already indicated that our earnings per share growth in 2005 should be in the 6-10 per cent range. With the benefit of this programme, earnings per share, excluding restructuring charges, is expected to increase at low double-digit rates in 2006 and beyond.'

Colgate is the best selling toothpaste in the U.S. but has faced increasing competition in recent years.