Up to 12-13% of Kimberly-Clark’s workforce – 5000 to 5500 workers – will be cut as the company undertakes a global restructuring program. About 10 manufacturing facilities will also be sold, with capacity increased at others. It will exit or divest some low-margin businesses in its consumer tissue segment that generate about one per cent of net sales.
"The changes we are making will improve our underlying profitability, provide more flexibility to invest in growth opportunities and help us compete even more effectively," said CEO Thomas J. Falk. Kimberly-Clark expects annual pre-tax cost savings of $500 to $550 million by the end of 2021 from the restructuring.
Fourth-quarter earnings rose year-on-year and topped analysts' expectations on an adjusted basis, while revenue came in below Wall Street's views. The company projects adjusted EPS for 2018 of $6.90 to $7.20, and revenue growth of one to two per cent.