Kimberly-Clark announced this week that it will reduce its global workforce by up to 5,500 jobs and close or sell about 10 manufacturing facilities as part of a corporate restructuring plan.
No details were provided on whether the Corinth Kimberly-Clark manufacturing plant would be impacted. The Corinth plant has about 160 company employees and another 140 contract employees.
There was no timeline on when information will be available on the fate of the Corinth plant.
A Kimberly-Clark spokesperson said, “The company is not providing specifics on the status of any of our production facilities or the proposed job reductions, beyond what is detailed in our press release, until final decisions are made and announced. The timing of those announcements will be determined by the needs of the business and appropriate consultation and/or negotiations with unions, works councils and other labor stakeholders.”
Manufacturing plants that are not closed could see production capacity expanded to “improve overall scale and cost.”
About 10 percent of the company’s mills globally would be impacted by the restructuring. The restructuring “is expected to broadly impact all of the company’s business segments and organizations in each major geography,” the news release said.
The restructuring is expected to “generate annual pre-tax cost savings of $500 to $550 million by the end of 2021” driven by workforce reductions and manufacturing supply chain efficiencies, the company said. The proposed employee reductions represent about 12 to 13 percent of the company’s global employees.
Kimberly-Clark Chairman and CEO Thomas J. Falk said the company in 2017 “delivered bottom-line growth in a challenging environment.”
Falk added, “Although we expect market conditions will remain challenging in the near-term, we plan to deliver better results in 2018 while we begin to implement our new restructuring . . . We believe that, over time, our 2018 Global Restructuring Program will accelerate our return to delivering on our long-term growth objectives.”
The restructuring will make Kimberly-Clark “leaner, stronger and faster,” he said.
The Dallas, Texas-based company manufactures brands such as Kleenex and Huggies and plans for a 1 to 2 percent increase in net sales in 2018.