The maker of Huggies and Kleenex will try to lower its costs by cutting 12 percent to 13 percent of its workforce.
Kimberly-Clark said Tuesday that it plans to close or sell about 10 manufacturing plants while expanding production elsewhere. It’s also looking to exit or sell some low-margin businesses that make up approximately 1 percent of company sales.
The company did not say where the job cuts would take place.
Kimberly-Clark Corp., based in Dallas, anticipates pre-tax savings of $500 million to $550 million by the end of 2021. It foresees total pre-tax restructuring charges in a range of $1.7 billion to $1.9 billion.
The company also reported mixed fourth-quarter results on Tuesday. Its adjusted profit of $1.57 per share was 3 cents better than what analysts polled by Zacks Investment Research predicted. But revenue of $4.58 billion was slightly below Wall Street’s expectations.
Kimberly-Clark’s annual sales declined for the three-year period between 2013 and 2016, according to
FactSet. But annual sales rose slightly in 2017 from the prior-year period.
The company is looking to save more than $1.5 billion between 2018 and 2021 as part of its ongoing cost-savings program.
Shares climbed 1.6 percent before the market open.