Home | About | Donate

After "Multi-Billion Dollar Windfall" From #GOPTaxScam, Kimberly-Clark Announces Plan to Layoff 5,000 Workers


#1

After "Multi-Billion Dollar Windfall" From #GOPTaxScam, Kimberly-Clark Announces Plan to Layoff 5,000 Workers

Published on
Wednesday, January 24, 2018
by

Edit News After "Multi-Billion Dollar Windfall" From #GOPTaxScam, Kimberly-Clark Announces Plan to Layoff 5,000 Workers

The personal care company plans to cut about 13 percent of its workforce a month after the Republican plan lowered its tax rate

Kimberly-Clark says it has focused on cutting costs in recent years, as declining birth rates in the U.S. have negatively impacted the company's diaper sales. (Photo: Gary Seidman/Flickr/cc)

Kimberly-Clark, the multinational corporation behind household brands including Huggies diapers and Kleenex, offered the latest proof this week that the Republican tax overhaul passed in December is not the boon to job creation it was promised to be.

The company announced on Tuesday that it will cut up to 5,500 jobs—13 percent of its workforce—weeks after the tax law reduced its tax rate by two to five percent, saving it billions of dollars according to tax analysts.

Kimberley Clark has historically paid a tax rate of 16.9%, will receive a multi-billion dollar tax windfall on its offshore earnings, and likely faces a significantly lower rate going forward, yet it is still cutting thousands of jobs. https://t.co/dfsImfCK2V

— Richard Phillips, Inc. (@taxjusticewonk) January 23, 2018

The tax savings are enabling the company to make the cuts, acknowledged chief financial officer Maria Henry in a conference call with members of the media.

"We also anticipate ongoing annual cash flow benefits from tax reform," Henry said. "That provides us flexibility to continue to allocate significant capital to shareholders while we also fund increased capital spending and our restructuring program over the next few years."

Some of the savings are expected to be used for severance packages for workers and other restructuring costs.

President Donald Trump and other Republican lawmakers traveled the country last fall in the run-up to the congressional votes on their tax plan, assuring Americans that the benefits of the lowered corporate tax rates would trickle down to workers.

"If [companies] are making money, they invest that money, they create more opportunities, more jobs, more research," Sen. Richard Shelby (R-Ala.) told the Huffington Post in November.

Kimberly-Clark's layoffs are just the latest evidence that few companies see their tax cuts as a way to enrich their workers and invest in their communities. On Monday, Bank of America announced it would do away with free online checking accounts, despite its expected $3.5 billion tax cut, while companies including Verizon and Exxon Mobil said before the law was passed that their savings would go to their shareholders.

The company's 2017 revenue was $18.3 billion, but executives have raised concerns about falling sales over the past four years. Kimberly-Clark was subject to a 28.6 percent tax rate in 2017, which will drop to between 23 and 26 percent in 2018—but tax policy analysts say its effective tax rate has actually been much lower.

Kimberley Clark has historically paid a tax rate of 16.9% (https://t.co/i4D9FnsqVC) and likely faces a significantly lower rate going forward, yet it is using its windfall to cut thousands of jobs: https://t.co/eXSdrznrO4

— ITEP (@iteptweets) January 24, 2018

This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License

#2

That should put the final nail in the Laffer Curve’s coffin.

That stuff that’s trickling down isn’t money, eh.


#3

Well now we know what happens when corp’s. get a tax cut…they lay off employees.


#4

My heart actually bleeds for all the poor saps who thought they were going to come out better off under Trump and the corporate junta that has taken over our nation. They still struggle to put a good spin on everything, it’s heart-rending.


#5

I’m Laffing now… :slight_smile:

Not really.

Gee, who would’ve guessed? What could possibly go wrong?


#6

Need to be edited: That provides us with flexibility to fire mass numbers of workers to continue to allocate significant capital to shareholders-parasites.

Workers need to own the means of production.


#7

Corporations are obligated to maximize profits.

If they can do it by producing and selling the same amount of products with less employees, they will.

If they can do it by producing and selling the same amount of products with less employees, plus enjoying a huge tax cut, the shareholders will be thrilled.


#8

Ooooh! Ooooh! Just wait, the Democrats will save us in November, or in 2020 from the wicked Republicans! (Note: Both sock puppets are owned and operated by the same bunch that ordered them to give them the tax cuts mentioned above, which they obediently did.)
*If We the People don’t forget the Duopoly and form a coalition to take the country back, we will all be living in the streets, begging for food and water. The people and corporations that bought the government don’t give a damn about us, just more profit and control. Starving, homeless people will work longer hours for much less. Another increase in profits.
;-})


#9

Yup those “poor” shareholders certainly need more capital.


#10

If nobody can buy their products- then f the shareholders!


#11

Yes, just like the coops in part of Spain.


#12

You’d think the shareholders would like to see a workforce that is out there being benefitted by the company. As it is the stock market is soaring. When is more not enough?


#13

This needs to be illegal, and until most people stop shopping a Wallyworld , and get their heads out of their collective Rears this will keep coming. We need to have everyone do some kind of government service. I have called and written about this for almost 20 years. That’s right even these vampire shareholders need to get off their fat As.


#14

Better yet, boycott these companies even if you can buy their products.


#15

It will be entertaining to see how the robber barons spin these layoffs as a good thing. They will find a way to blame it on someone other than themselves and as usual the many moronic citizens of the USA will swallow their lies and repeat them as the truth.


#16

“When will they ever learn. When will they ever learn.” Yes, when will we ever learn? 99% of all politicians are liars.


#17

So they thought Clinton would be their savior?


#18

People’s Progressive Party, PPP.


#19

Translation from politician-speak:  “If companies are making more money then they can afford to give bigger ‘campaign contributions’ (bribes) to us senators and congresspeople.”


#20

The French had the same type of problem a long time ago and ten they invented the guillotine. Alot of rich French heads rolled off of the guillotines.