DALLAS (AP) – Kimberly-Clark plans to eliminate up to 1,300 jobs as part of restructuring efforts aimed at reducing costs and making its business more efficient.
The Irving, Texas-based consumer products company behind brands such as Kleenex and Huggies has 58,000 workers worldwide, according to its website. That means the cuts would amount to about 2 percent of its workforce.
Kimberly-Clark Corp. said Tuesday that it anticipates restructuring costs between $130 million and $160 million, after taxes. The company foresees between $120 million and $140 million in savings by the end of 2017.
The restructuring is expected to be completed by the end of 2016.
Kimberly-Clark also cut its 2014 adjusted profit forecast to account for the spinoff of its health care business. The company now expects an adjusted profit between $5.93 and $6.03 per share, down from its prior range of $6 to $6.15 per share. Analysts polled by FactSet expect $6.06 per share.
Kimberly-Clark announced in November 2013 that it wanted to spin off its health care business. The move will create a separate, publicly traded company named Halyard Health Inc. The spinoff is expected to be effective by the end of October.
For the third quarter, Kimberly-Clark reported an adjusted profit of $1.61 per share on revenue of $5.44 billion. This topped Wall Street’s forecast for earnings of $1.54 per share on revenue of $5.35 billion.
Shares of the company gained $2.07, or 1.9 percent, to $110.11 in morning trading.
