Wednesday, February 07, 2018

Kimberly Clark Uses Tax Cut to Fire 5,500

Kimberly-Clark announced on Tuesday that it would cut between 5,000 and 5,500 jobs, or roughly 12 or 13% of the company's employees. The personal care product company also announced plans to shut down 10 manufacturing facilities. The restructuring program is estimated to save Kimberly-Clark $500 to $550 million by the end of 2021. The company said it plans to use savings from the Republican tax plan to fund the cuts and other restructuring efforts, The New York Times reported. Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts.

Comments

Kimberly-Clark, I know them well a true sleaze-bag corporation

#1 | Posted by PunchyPossum at 2018-02-05 06:07 AM

But but but, a secretary in a public school is getting an extra $1.50 in her paycheck so it all balances out.

- Paul Ryan, a wholly owned subsidiary of Koch Industries

#2 | Posted by 726 at 2018-02-05 06:55 AM

The orange scumbag won't be tweeting about this story.

#3 | Posted by reinheitsgebot at 2018-02-05 08:45 AM

He also won't be mentioning the DJIA 600 point drop either.

#4 | Posted by 726 at 2018-02-05 10:40 AM

Thanks Obama

#5 | Posted by JaySherman at 2018-02-05 09:24 PM

Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts.

That's what I was expecting with this Tax Cut, but thankfully this is the first I've publicly heard about allocating capital to shareholders. I wonder how many other companies are doing so...quietly.

#6 | Posted by rstybeach11 at 2018-02-07 12:43 PM

Sorry to interrupt the-----------, but Kimberly Clark has been implementing this restructuring plan (FORCE, Focused On Reducing Costs Everywhere) for several years and first announced that cuts under FORCE would be made back in 2012. This is the yearly update, FORCE was a 10 year plan and runs to 2021.

2017 Investor Relations Fact Sheet (Issued 1/22/17)

thanks Obama indeed.

#7 | Posted by Rightocenter at 2018-02-07 12:56 PM

The crux of the article is that money saved from the tax cuts isn't going to workers:

"The company said it plans to use savings from the Republican tax plan to fund the cuts and other restructuring efforts, The New York Times reported. Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts."

#8 | Posted by Gal_Tuesday at 2018-02-07 01:03 PM

That's because they are restructuring, Gal, which means, in this case, that they have been cutting costs and operations for at least 6 years. Maybe this will help them accelerate the process.

The point is, this announcement has nothing to do with the tax cut and these cuts were planned a long time ago, they are just announcing how their tax savings will affect year 7 of a 10 year restructuring plan.

#9 | Posted by Rightocenter at 2018-02-07 01:07 PM

They are shifting their focus to overseas markets (from link in #7):

DRIVING RAPID GROWTH IN DEVELOPING & EMERGING MARKETS K-C's business in developing and emerging market has grown rapidly over the Global Business Plan timeframe and is now nearly 30 percent of total company revenues. We will continue to execute targeted expansion and growth plans, with a particular focus on markets in China, Eastern Europe and Latin America and our Personal Care and K-C Professional brands.

#10 | Posted by Gal_Tuesday at 2018-02-07 01:13 PM

RoC -

More like the tax cuts have nothing to do with the announcement, only that the tax cuts ADD to the capital allocated to share holders.

#11 | Posted by rstybeach11 at 2018-02-07 01:19 PM

Well... at least Trump saved all those jobs with Carrier in Indiana... Oh. Nevermind.

#12 | Posted by moder8 at 2018-02-07 01:23 PM

This is the result of capitalism doing what capitalism was designed to do. Efficiently allocate capital for the benefit of investors.

Anyone who thinks tax cuts will change that is an idiot.

Corporate tax cuts will not stop the replacement of U.S. manufacturing jobs with technology or foreign workers.

#13 | Posted by bored at 2018-02-07 01:30 PM

#10

Which means that they are focusing on becoming more of an exporter, which is a good thing.

#11

Fair enough, they did announce that the savings would be used "to fund the cuts and other restructuring efforts...additionally be used for capital investments and allocate capital to shareholders." The savings will add to the bottom line, and all publicly traded companies have to act in the best interest of their shareholders, which include many of the largest Public Employee Retirement Groups in the country.

#14 | Posted by Rightocenter at 2018-02-07 01:33 PM

"Which means that they are focusing on becoming more of an exporter, which is a good thing."

Exporter, no. They build the factories overseas.

#15 | Posted by Gal_Tuesday at 2018-02-07 01:34 PM

#13

That is exactly correct, and most people don't understand that the tax cuts will have no impact on capital allocation or the advance of technology, they merely respond to the sound bites fed to them that comport with their personal narrative.

#16 | Posted by Rightocenter at 2018-02-07 01:35 PM

#15

Even if they manufacture goods overseas they are still considered an exporter from a balance of trade standpoint.

#17 | Posted by Rightocenter at 2018-02-07 01:36 PM

#17 Doesn't help American workers though.

#18 | Posted by Gal_Tuesday at 2018-02-07 01:56 PM

ROC dont care about workers,he only care about defending Nazi's and POS corporations as he is a Russian bot.

#19 | Posted by aborted_monson at 2018-02-07 02:26 PM

Sorry to interrupt the-----------, but Kimberly Clark has been implementing this restructuring plan (FORCE, Focused On Reducing Costs Everywhere) for several years and first announced that cuts under FORCE would be made back in 2012. This is the yearly update, FORCE was a 10 year plan and runs to 2021.

2017 Investor Relations Fact Sheet (Issued 1/22/17)

thanks Obama indeed.

#7 | Posted by Rightocenter

I don't want to spoil your Biggest Tax Cut in the History of the Universe orgasmic afterglow with facts but that same logic could be applied to many companies giving raises and bonuses, too.

Enjoy your $1.50.

#20 | Posted by donnerboy at 2018-02-07 03:02 PM

#20

That was pretty much my point.

And since I live in CA the tax bill really sucks for me personally, but I know it will help a lot of people whether you or I like it or not.

#21 | Posted by Rightocenter at 2018-02-07 04:07 PM

Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts.
That's what I was expecting with this Tax Cut, but thankfully this is the first I've publicly heard about allocating capital to shareholders. I wonder how many other companies are doing so...quietly.
#6 | Posted by rstybeach11 at 2018-02-07 12:43 PM

That's the entire purpose of "restructuring". Look at what Romney did for his entire career - buy out, inflate insurance risk, close manufacturing and collect federal subsidization.

They do it over and over. I have yet to see any business doing well since the rolling blackouts were directed. The "free market" energy grid is used to destroy national competition. ALL of our technical industry in northern Cali was moved offshore, no exceptions.

#22 | Posted by redlightrobot at 2018-02-07 04:15 PM

That's the entire purpose of "restructuring".

Actually, more than 80% of the time, a company restructures to avoid bankruptcy, with almost 2/3rds of those filing Chapter 11 or 13 if the restructuring plan doesn't work, at which point the shareholders get almost nothing.

Look at what Romney did for his entire career - buy out, inflate insurance risk, close manufacturing and collect federal subsidization.

Close, but not quite. Bain Capital made its mark as a distressed Private Equity player, it would find companies that were on the brink of BK, force them to restructure and then try to sell them once the balance sheet was clean. The accusations of "inflating insurance risk" are usually baseless, since that would be counterproductive to most restructuring plans and would wash out in a pre-pack Chapter 11, which is another mechanism used by PE investors. As for "collecting federal subsidization" that usually depends on the industry in which the company resides, there are always programs that are available for companies who qualify.

#23 | Posted by Rightocenter at 2018-02-07 04:30 PM

Sorry, I should have said Chapter 7 instead of 13 in the first paragraph.

#24 | Posted by Rightocenter at 2018-02-07 04:40 PM

@ wrongofcenter, that $1.50 is really going to help people you know?????? Really???? Even your Nazi sympathizing ass can't be that stupid to believe that....... oh wait, we are talking about you, never mind you are that dumb and gullible.

#25 | Posted by aborted_monson at 2018-02-07 05:55 PM

#25

Don, Coco must really appreciate that he is not longer alone in the "ROC Lives in my Encephalitic Head" Club.

#26 | Posted by Rightocenter at 2018-02-08 02:39 PM

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