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Kimberly-Clark to cut up to 13% of workforce, close 10 factories
January 24, 2018 by The Associated Press
Jan. 24, 2018 – Kimberly-Clark says it will cut as many as 5,500 jobs, or 13 per cent of its workforce, in an attempt to lower costs, saying it is seeing a decline in demand for some core products as U.S. birthrates fall.
The Huggies and Kleenex maker said Tuesday it plans to close or sell about 10 manufacturing plants while expanding production elsewhere. It’s also looking to exit or sell some low-margin businesses that make up approximately 1 per cent of company sales.
The company did not say where the job cuts would take place.
Kimberly-Clark Corp., based in Dallas, anticipates pre-tax savings of $500 million to $550 million by the end of 2021 from the cost-cutting moves. It foresees total pre-tax restructuring charges in a range of $1.7 billion to $1.9 billion.
Kimberly-Clark’s annual sales declined for the three-year period between 2013 and 2016, according to FactSet. But annual sales rose slightly in 2017 from the prior-year period.
The company is looking to save more than $1.5 billion between 2018 and 2021 as part of its ongoing cost-savings program.
