UK Markets close in 4 hrs 39 mins

Huggies' owner Kimberly-Clark to slash 5,000 jobs, close 10 factories

Lauren Thomas
Kimberly-Clark, the maker of Huggies diapers and Kleenex tissues, will be slashing about 13 percent of its workforce globally.

Kimberly-Clark , the maker of Huggies diapers and Kleenex tissues, on Tuesday announced it will be slashing about 13 percent of its workforce globally, or at least 5,000 jobs, in a bid to cut costs as sales wane.

The company will also be shuttering or selling 10 of its production factories. It has 91 such facilities worldwide.

In making these changes, Kimberly-Clark is anticipating more than $2 billion in cost cuts by 2021. It's also looking to exit or divest some of its lower-margin businesses, particularly those in the consumer tissue segment.

"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," Chief Executive Officer Thomas Falk said in prepared remarks.

"Although we expect market conditions will remain challenging in the near-term, we plan to deliver better results in 2018 while we begin to implement our new restructuring," he said.

Kimberly-Clark is facing greater competition and pricing pressure from the likes of Amazon and Walmart , which are heavily marketing their private-label products with steep discounts and threatening profit margins.

This story is developing. Please check back for updates.