US based personal care firm Kimberly-Clark has announced plans to restructure the business, including reorganizing its manufacturing operations.
Announcing the move alongside its annual financial statements, the Huggies and Kotex brand owner said it intended to cut around 5,500 jobs and to close 10 manufacturing plants as part of the restructuring process. The firm said this would be done in order to reduce the company’s structural cost base by streamlining and simplifying its manufacturing supply chain and overhead organization.
Kimberly-Clark said it also planned to divest low-margin businesses that generate less than 1% percent of company net sales, and expand production capacity in other facilities. The company added that its sales were concentrated in the consumer tissue segment.
The restructuring is expected to generate annual cost savings of $500 to $550 million by the end of 2021 and accelerate the firm’s return to delivering its long-term growth objectives, Kimberly-Clark said, adding that it had established a cost savings target of over $1.5 billion from 2018 to 2021 from its ongoing FORCE (Focused On Reducing Costs Everywhere) programme.