K-C to Cut 1.300 Jobs in Restructuring Initiative
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Kimberly-Clark Corp., Dallas, Texas, USA, this week reported that it plans to cut up to 1,300 jobs as part of a restructuring initiative to cut costs, while also reporting a 2.9% increase in third-quarter earnings. K-C said the restructuring effort will help reduce stranded overhead costs stemming from the spin-off of its health-care unit, which is expected to close by the end of this month. The job cuts will impact mainly salaried employees.
The company has some 58,000 workers worldwide, meaning the cuts would amount to about 2% of its global workforce. It anticipates restructuring costs between $130 million and $160 million, after taxes. K-C foresees between $120 million and $140 million in savings by the end of 2017. The restructuring is expected to be completed by the end of 2016.
K-C announced in November 2013 that it would spin off its health care business. The move will create a separate, publicly traded company named Halyard Health Inc. The spinoff is expected to be effective by the end of this month.
