Kimberly-Clark Announces Next Phase in its Strategic Transformation

They include a new operating model and core commercial initiatives to accelerate the company’s growth.

With brands such as Kleenex and Huggies, this company is a global leader in consumer goods. Going forward, the business will operate through three segments – North America, International Personal Care, and International Family Care and Professional – to streamline operations and realise savings. The Texas-headquartered firm reportedly said it would incur restructuring costs of roughly $1.5bn.

Previously, the business also had three divisions: Personal Care, Consumer Tissue, and Kimberly-Clark Professional – making this remodelling both geographic and functional. Kimberly-Clark aims to complete the transformation by the end of this year.

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In its filing, Kimberly-Clark did not disclose how many jobs it plans to cut. Reuters indicated that the strategic reorganisation follows the company’s persistent price increases that have failed to deliver the envisaged benefits, and the retail sector continues to buckle under high inflation.

Apart from its divisional reorganisation, the company also intends to boost investment in science and technology. It further aims to focus on its top revenue-driving brands in baby and child, feminine, adult, and professional care. The firm expects its supply-chain shake-up to generate more than $3bn in gross productivity and $500m in working capital savings.

The company expects savings of about $200m across its sales, general, and administrative functions for the foreseeable future.