Monday, January 29, 2018

Kimberly Clark to Use Tax Cut to Fire Thousands


Remember how the Trump tax cut was supposed to stimulate job growth.  Well the retail products company Kimberly Clark is going to use their tax cut to pay for severance and other costs of firing a large amount of their work force.

"Restructurings typically come with upfront costs for the companies, as they pay workers severance or renegotiate leases. In a conference call with analysts on Tuesday, Kimberly-Clark’s chief financial officer, Maria Henry, said “cash flow benefits” from the Republican tax cut would help fund “the restructuring program over the next few years.” She said the tax savings would also be used to make capital investments and to “allocate significant capital to shareholders.”

Gosh, expect the Republicans to really publicize this.  Oh, and that part about allocating capital to shareholders.  That means huge payments to shareholders at the same time regular employees get a nice pink slip. 

"In addition to announcing job cuts on Tuesday, Kimberly-Clark said it would raise its quarterly dividend by 3.1 percent this year. Last year, the company spent about $900 million repurchasing its own shares."

 Exactly what one might expect from Republican policies.

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