Kimberly-Clark to Close 10 Factories, Will New Milford Be Affected?
Kimberly-Clark, the makers of Huggies diapers and Kleenex tissues will be reportedly cutting some 5000 jobs and closing 10 of its plants worldwide in an attempt to reduce costs. Will the New Milford facility be affected by these cut backs?
It was announced Today (January 24) that Kimberly-Clark plans to cut 13% of its workforce in order to cut costs by $2-billion before 2021. The move, which was brought on due to sluggish sales and a bloated production base, should increase net sales by one to two percent during 2018, according to a report at cnbc.com. Right now, the company is not announcing anything specific about the plants that they are closing, but the company operates a factory on Pickett District Road in New Milford. Kimberly-Clark declined to disclose the locations affected by the maneuvers.
According to a company spokesperson, the timing of those announcements will be determined by the needs of the business and appropriate consultation and/or negotiations with unions, works councils and other labor stakeholders. While not providing specifics, the proposed employee layoff's will impact all geographies, business units and functions. According to cnbc.com, CEO Thomas Falk made this comment in a prepared statement:
The changes we are making will improve our underlying profitability, provide more flexibility to invest in growth opportunities and help us compete even more effectively.
Kimberly-Clark has been hurt recently by retailers cutting prices in a fight for market share, meanwhile, other local retailers like Walmart and Aldi, who are best know for their low prices, continue to open new stores and increase their influence.
Read More Local Stories:
Mr. Morning's Hip Hop Ode to the Ice Jam on the Housatonic River:
2018 GRAMMY Awards: Country Category Predictions By Us