Kimberly-Clark to Cut 1600 Jobs by End-2009

June 25, 2009 - Kimberly-Clark today said it will reduce its worldwide salaried workforce by approximately 1,600 positions by the end of the year.

The Dallas-based consumer products company said that a combination of the challenging economic environment and a need to reduce costs drove the decision.

"These actions, while difficult, are necessary to help us emerge from this demanding economic environment as a stronger company," said Tom Falk, Kimberly-Clark Chairman and CEO.

"Through these changes we will be a more effective organization, with faster decision-making helping to drive efficiency throughout all aspects of our operations. In addition, by increasing our cash generation, we will be in a better position to take advantage of future growth and innovation opportunities," Falk said.

K-C expects the organizational changes will generate annualized pre-tax savings of about $150 million.

K-C anticipates savings of approximately $60 million, or 10 cents per share, which will benefit the company's results during the second half of 2009.

Severance and related costs to streamline the organization will be recorded during the second, third and fourth quarters of the year, totaling $140 million to $150 million pre-tax, equivalent to about 25 cents per share, the company said.

Approximately $110 million of the costs will be recorded in the second quarter, K-C said.

Reductions in the workforce will come from all regions and business segments of K-C's global operations and will primarily affect salaried and non-production jobs.

The company said it does not plan to close any of its manufacturing facilities as part of these actions.

SOURCE: Kimberly-Clark Corp.

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