NORTHEAST WISCONSIN (WTAQ) – A company that employs more than 3,000 people in Northeast Wisconsin has announced plans to cut jobs.
Kimberly-Clark says it will eliminate 5,000-5,500 positions (12-13% of its total workforce) in an effort to lower costs.
The company, which makes Kleenex and Huggies, also intends to either close or sell roughly ten manufacturing plants and exit some of its low-margin businesses that make up around 1% of its sales.
In addition, the manufacturer says it plans to expand production elsewhere.
Kimberly-Clark employs about 3,000 people at its Appleton, Marinette, and Neenah locations.
No word on where the cuts will take place.
However, Outgamie County Executive Tom Nelson notes this could be the latest in a recent string of blows to the area.
“It’s been a very rough six months here in the paper valley. First, we had news about Appleton Coated, then U.S. Paper Converters, then Appvion. A lot of people are asking questions: ‘what’s going to be left in a year, in five or ten years’ and ‘how many plant closures and layoffs must we sustain before something meaningful is done?’”
Nelson notes the 3,000 people employed are not the extent of each job.
“We know that they will support up to five other jobs in that community.”
As a result, Nelson says he’s suggested a solution to the governor’s office.
“The creation of The Papermaker Fund, that would be constituted with about $30-million dollars, and use that to invest in home-grown industry here in Northeast Wisconsin.”
The Dallas-based company projects a pre-tax savings of $500-million to $550-million dollars by the end of 2021, expecting total pre-tax restructuring changes ranging from $1.7-billion to $1.9-billion dollars.
Kimberly-Clark has announced mixed fourth-quarter 2017 results. The adjusted profit of $1.57 per share was three cents above projections, but its $4.58-billion dollar revenue was slightly below expectations.
The manufacturer’s annual sales declined for the stretch from 2013-2016, but annual sales reportedly rose slighly in 2017.
Shares climbed 1.6% before markets opened.
