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Kleenex Maker Slashes Up to 13% of Jobs and Shutters Factories

  • Kimberly-Clark betting on lower costs to improve margins
  • Earnings exceeded analysts’ estimates in latest quarter
Kimberly-Clark Corp. Products Ahead Of Earnings Figures

Photographer: Daniel Acker/Bloomberg

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As companies move to boost jobs and pay in the wake of the U.S. tax overhaul, Kimberly-Clark Corp. is going in the opposite direction.

The producer of Kleenex tissues and Huggies diapers is cutting 5,000 to 5,500 workers -- or 12 to 13 percent of its headcount -- as part of its drive to reduce spending and boost margins amid uneven revenue growth and higher material costs. Kimberly-Clark will also close or sell about 10 factories while expanding production at other sites, according to a statement.