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Kimberly-Clark cuts back
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November 21, 1997: 7:51 p.m. ET
Company announces up to 5,000 layoffs in a $590M restructuring plan
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DALLAS (CNNfn) - Kimberly-Clark Corp. said on Friday it will lay off up to 5,000 workers and close 18 factories worldwide as part of a major restructuring plan.
The company will take an after-tax charge of $590 million, or $1.06 a share, in the fourth quarter to pay for the downsizing.
The job cuts represent about 7 percent of the work force at the Dallas-based company, which makes tissues and other personal care products.
Wayne Sanders, chief executive of the company, said it had been hurt by low prices and heightened competition in Europe. He said operating profit would fall by about $250 million as a result of the lower prices.
"Kimberly-Clark will be in a better position than ever to take advantage of the strengths inherent in its global brands and advanced technologies," Sanders said.
The cutbacks will allow the company to reach its goal of doubling its earnings by 2000, he said.
Kimberly-Clark will sell one tissue mill in Winslow, Me., but won't identify the other factories until it notifies employees.
The company made the announcement after the U.S. stock market closed Friday.
Kimberly-Clark stock (KMB) was up 1-7/8 to 53-3/4 at the close of trading on the New York Stock Exchange.
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Kimberly-Clark Corp.
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