Rubbermaid-owner Newell Brands Inc. is planning to close eight of its North American distribution centers by the end of 2024, which will result in roughly 500 job cuts.

The layoffs represent about 2% of the company’s total workforce, according to Chief Executive Officer Chris Peterson, who took the helm in May. Newell, which also owns the Graco baby gear and Sharpie marker brands, will continue investing in training and automation at its roughly 20 remaining warehouses. It’s also planning to increase headcount at some distribution centers — about 70% of the jobs lost will be added back over time, the company said.

Newell will provide severance packages and job transition support for employees affected by the closures. All of its warehouses are leased properties.

The company is undergoing a restructuring and strategy overhaul meant to simplify its operations with fewer items, which will help save on costs and improve margins. The plan has included the elimination of office jobs as well.

Newell saw a pandemic-driven demand boom in 2021, but that’s abated as consumers pull back spending amid high levels of inflation. The owner of Coleman outdoor gear said it’s expecting core sales, which excludes the impact of acquisitions and divestitures, to decline between 10% and 12% this year compared with last year.

“Real incomes have gone down because inflation has outpaced wage growth,” Peterson said in an interview. “Consumers, as a result, are being forced to prioritize their spending on more essential items.”

Newell is focused on its 25 top-selling brands and is considering discontinuing some of its smaller, unprofitable brands. Item count is expected to be fewer than 25,000 by the end of the year, compared with 100,000 five years ago, Peterson said. In 2021, the company discontinued its Aerobed air-mattress business to focus on Coleman inflatable bedding.

Newell shares have slumped nearly 17% for the year to date. The stock was little changed in New York trading Monday.