• Sat. May 25th, 2024

Kimberly-Clark Announces Major Restructuring and Faces Challenges from Inflation and Private-Label Competition

BySamantha Nguyen

Mar 27, 2024
Kimberly-Clark Set to Reorganize Business, Face $1.5 Billion in Costs

Kimberly-Clark, a leading tissue products company based in Irving, Texas, has announced plans to restructure its operations into three business units in order to streamline operations and reduce costs. The company anticipates about $1.5 billion in related expenses over the next three years, with approximately half of this amount in cash costs, including workforce reductions.

The restructuring comes as Kimberly-Clark faces challenges such as decreasing benefits from price hikes and reduced purchasing by customers due to inflation. The company is also experiencing loss of shelf space at retailers to more affordable private-label alternatives. To address these challenges, Kimberly-Clark has reorganized its segments into North American business, international personal care, and international family care and professional businesses.

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

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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