Kimberly Clark Announces 5,000 Job Cuts, 10 Factory Closings

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Kimberly Clark Corp (NYSE:KMB) is laying off employees as part of its new restructuring effort.

Kimberly Clark Announces 5,000 Job Cuts, 10 Factory Closings

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Kimberly Clark says that the restructuring effort will have it reducing the number of employees that work for it by 5,000 to 5,500. This represents between 12% and 13% of its current total employees.

Kimberly Clark is expecting the restructuring program to save it between $500 million and $550 million by the end of 2021. The effort will also include closing down or selling 10 of its factories. It notes these changes will affect all of its businesses across each major geographical area.

According to Kimberly Clark, it is expecting the restructuring effort to cost it between $1.70 billion and $1.90 billion before taxes by the end of 2020. The company also says that it will be excluding these charges when reporting adjusted earnings in future reports.

News of the Kimberly Clark job cuts and factory closings come alongside its results for the full year of 2018 and its outlook for 2018. Earnings per share and revenue for the year came in at $6.23 and $18.26 billion. Earnings per share and revenue from 2016 was $6.03 and revenue was $18.20 billion. Wall Street was expecting the company to report earnings per share of $6.21 and revenue of $18.29 billion for the full year of 2017.

As for 2018, Kimberly Clark is expecting earnings per share to range from $6.90 to $7.20. If it can reach this goal, it will easily beat out analysts’ earnings per share estimate of $6.60 for the full year of 2018.

KMB stock was down slightly as of noon Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/kimberly-clark-announces-job-cuts/.

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