While many companies are using President Trump’s tax cuts to give workers bonuses or raise wages, the maker of Kleenex and Huggies is doing the opposite.
Kimberly-Clark announced on Tuesday that it would cut between 5,000 and 5,500 jobs, or roughly 12 or 13% of the company’s employees.
The personal care product company also announced plans to shut down 10 manufacturing facilities. The restructuring program is estimated to save Kimberly-Clark $500 to $550 million by the end of 2021.
The company said it plans to use savings from the Republican tax plan to fund the cuts and other restructuring efforts, The New York Times reported. Tax savings would additionally be used for capital investments and to allocate capital to shareholders, CFO Maria Henry said in a call with analysts.
A number of companies have announced pay hikes and bonuses in response to the new tax plan. Walmart said that it would give employees bonuses due to the new tax plan – on the same day that it laid off thousands after closing more than 60 Sam’s Club locations.