Every different style or color of product had a different SKU. Sunbeam had 12,000 employees, 26 factories worldwide, 61 warehouses, and 6 headquarters. This is when "Chainsaw Al- came on the scene. Albert Dunlap, who was known to business types as "Chainsaw Al,"" "Rambo in Pinstripes,"" or simply "The Shredder,"" had earned a reputation as one of the meanest and most ruthless executives in the nation because of his habit of eliminating thousands of jobs. He was also known for his ability to restructure and turn around troubled companies, and The Sunbeam Corporation needed his help. Its earnings had been declining since December of 1994, and by 1996, the stock was down 52 percent and earnings had declined by 83 percent. .
Dunlap's reputation and business theory preceded him worldwide. His philosophy was simple. He followed four rules in order to make money for shareholders: 1) get the right management team, 2) cut back to the lowest costs, 3) focus on the core business, 4) get a real strategy. His philosophy was to make massive cuts in all areas of operation, and make massive layoffs to streamline business. He operated as if people were disposable, and fired them if he felt the cost more than they were worth. Dunlap even authored a book entitled, Mean Business, in which he stated that the most important goal of any company is to make money for its shareholders. His philosophy was lacking in regards to ethics and responsibility. His goal was to make money for the shareholders at all costs, and his philosophy worked. By following his rules, he had successfully turned around companies in seventeen states, on three continents.
In July of 1996, Michael Price and Michael Steinhardt hired Al Dunlap as the CEO and chairman of the board for the Sunbeam Corporation. By hiring "Chainsaw Al,"" they knew full well that his operating theory would mean huge cuts in all areas, as well as massive layoffs, but they had tried unsuccessfully to sell Sunbeam, and they were convinced that this was the only way to turn things around.
