Kimberly-Clark Set to Reorganize Business, Face $1.5 Billion in Costs

Kimberly-Clark Simplifies Operations and Faces $1.5 Billion in Costs Amidst Inflation and Competition

Kimberly-Clark, known for its Kleenex tissue products, has announced plans to restructure its operations into three business units in an effort to simplify operations and reduce costs. The company, based in Irving, Texas, anticipates about $1.5 billion in related costs over the next three years. Approximately half of this amount will be in cash costs, with a focus on workforce reductions, although the specific number of jobs affected was not disclosed.

Kimberly-Clark is facing challenges including decreasing benefits from price hikes and reduced purchasing by customers due to inflation. Like its competitors Procter & Gamble and Unilever, Kimberly-Clark is also experiencing loss of shelf space at retailers to more affordable private-label alternatives. In response to these challenges, the company’s reorganized segments will now consist of its North American business, international personal care, and international family care and professional businesses.

The transition to the new organizational structure is scheduled to be completed by the end of 2024. Kimberly-Clark expects the restructuring to result in $200 million in selling, general, and administrative savings over the next few years. The company has reiterated its annual organic net sales and adjusted profit targets provided earlier in the year. Despite missing fourth-quarter sales and profit estimates in January, the company remains optimistic about its future performance. Prior to the announcement, Kimberly-Clark’s shares had increased by 1.5%.

Leave a Reply

Our Model Predicts the 2024 World Series Champion, Playoff Odds, and Win-Loss Records Previous post Simulated 2024 MLB Season Predicts Astros vs. Dodgers World Series Showdown: A Closer Look at AL and NL Projections
Do Not Use the Sahm Rule Recession Indicator on States Next post Rising Unemployment Rates Signal Potential Recession in Multiple US States