DALLAS (AP) – Kimberly-Clark is cutting 5,000 to 5,500 jobs, or 12 percent to 13 percent of its workforce, as the consumer products company tries to lower costs.
The Huggies and Kleenex maker 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.
The company says declining birthrates affecting diaper sales and stiffer competition with online shopping are some reasons cited for the layoffs.
Kimberly-Clark Corp., based in Dallas, anticipates pre-tax savings of $500 million to $550 million by the end of 2021.
Shares rose 1.4 percent in premarket trading.
(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)