Friday, July 22, 2005

Giant Sucking Sound Still Roars

Kimberly-Clark Plans About 6,000 Job Cuts - Yahoo! News
"Kimberly-Clark Corp., the maker of Kleenex tissues and Huggies diapers, said Friday it plans to cut about 6,000 jobs and sell or close up to 20 manufacturing plants.


The company announced the plans as it reported earnings for the second quarter fell slightly due to a tax expense for repatriating foreign profits. Sales rose 8 percent, helped by strong sales of tissue products in North America."

There's no real bad news for the company or its management in this announcement, the only ones getting burned are the men and women on the floor doing the actual work. Surprise, middle class gets hit again.

Why the cuts? Of course, they can't come right out and say it, but they're going to replace their lower to middle class workers with the working poor from third world countries.
"When pressed by analysts, Falk said that most changes among the 118 plants worldwide would be in North America and Europe, "but we will not provide any more detail at this time."

The moves also come on the heels of another cost-cutting plan outlined in December during an analysts meeting. The company announced plans to cut $450 million to $500 million over three years, but on Friday Falk said, "we needed to go further. This will help us deliver on our margin improvement, an area where we have fallen short.""

Management and institutional shareholders will be able to add another vacation home to their portfolios, and Joe Sixpack will be looking for work (probably for less pay.)

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