Kimberly-Clark Corporation announced Thursday it will reduce its worldwide salaried workforce by about 1,600 positions by the end of the year.
Reductions in the workforce will come from all regions and business segments of Kimberly-Clark's global operations and will primarily affect salaried and non-production jobs. The company does not plan to close any of its manufacturing facilities as part of these actions.
According to company spokesman Dave Dickson, it is too early to determine how many salaried positions will be affected on a regional or local basis. Of the 1,600 positions to be eliminated globally, about 750 will be in North America, he said.
"These actions, while difficult, are necessary to help us emerge from this demanding economic environment as a stronger company," Tom Falk, Kimberly-Clark Chairman and CEO said in a prepared statement. "Through these changes we will be a more effective organization, with faster decision-making helping to drive efficiency throughout all aspects of our operations. In addition, by increasing our cash generation, we will be in a better position to take advantage of future growth and innovation opportunities."
According to a prepared statement, "It is expected that the organizational changes announced today will generate annualized pre-tax savings of about $150 million, further strengthening Kimberly-Clark's profitability and cash flow. Anticipated savings of approximately $60 million, or 10 cents per share, will benefit the company's results during the second half of 2009. Severance and related costs to streamline the organization will be recorded during the second, third and fourth quarters of the year, totaling $140 million to $150 million pre-tax, equivalent to about 25 cents per share. Approximately $110 million of the costs will be recorded in the second quarter."