Huggies Manufacturer Using Savings From Trump Tax Scam To Eliminate 5,500 Jobs

Kimberly-Clark, the company that makes Huggies, Kleenex, and many other products you use on a regular basis, brags that  “nearly one-quarter of the world’s population purchase our products every day” — so why are they laying off 13% of their workforce? The answer, in short, is Donald Trump.

The company says that the Trump tax cuts, which Republicans have repeatedly denied are a gigantic gift to large corporations and the rich at the expense of the rest of us, is helping pay for  a massive “restructuring program” that will include laying off 5,500 people and closing 10 manufacturing facilities — developments that are, if anything, the opposite of #MAGA.

Kimberly-Clark expects its effective tax rate in 2018 to be much lower than 2017 — between 23 and 26 percent — thanks to the GOP’s tax scam.

“The fourth quarter effective tax rate was 19.2 percent in 2017 and 35.7 percent in 2016. The rate in 2017 included a net benefit as a result of U.S. tax reform and related activities,” Clark says.

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“We also anticipate ongoing annual cash-flow benefits from tax reform,” Kimberly-Clark Chief Financial Officer Maria Henry said on an earnings call Tuesday. “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.”

As for the workers who depend on their jobs to put food on the table? Well, fuck them, apparently. But they deny that the GOP’s legislation had anything to do with the decision, so there’s that.

“Kimberly-Clark, a company with a long history of supporting American workers and manufacturing, is undertaking a restructuring program to retain its leadership in a rapidly evolving global marketplace by streamlining its operations and reducing costs in order to continue investing in its brands and long term growth,” the company said in a statement. “The decision to undertake this restructuring program was made independently and not as a result of the recently passed tax reform legislation.”

See? Nothing to see here. They started planning for this while Republicans were just talking about their tax plan, so their decision to move forward with it after Trump gave them a massive gift is just a coincidence. Nothing to see here.

“Kimberly-Clark remains committed to American manufacturing, plans significant capital investments into its ongoing U.S. operations, and will remain a significant employer with more than 12,000 employees in the U.S.,” the company lied.

The company is anticipating a 3.1 percent increase in quarterly dividend in 2018.

If this is making America great again we’ll take the old busted America, thanks.


Image via screengrab