K-C to Cut 1.300 Jobs in Restructuring Initiative

Kimberly-Clark Corp., Dallas, Texas, USA, reports 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. 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.