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Kimberly-Clark Cutting 5,000 Jobs Amid Pressure on Prices

March 15th, 2018 | Leave a comment.

Kimberly-Clark, the maker of Huggies and Kleenex, is laying off about 13 percent of its work force and shedding factories worldwide, amid declining birthrates that are affecting diaper sales and a retail price war that is weighing on profits1.

The company said Tuesday that it would cut between 5,000 and 5,500 jobs in an effort to reduce expenses as it faced stiffer competition for consumer staples like tissues, paper towels and wet wipes.

1 New York Times

Kimberly-Clark Corporation 401k and Profit Sharing Plan is a defined contribution plan with a profit-sharing component, 401k feature, and ESOP component. This plan has a BrightScope Rating of 82, placing it in the top 15% of all plans in its peer group. This plan is also in the top 15% of plans for Account Balances, Company Generosity, Salary Deferral, and Total Plan Cost.

For the average 401k participant, the 8 point difference between this plan’s BrightScope Rating (82) and the top rated plan (90) could equate to: 6 additional years of work and $23,184 in lost savings.

The investment advisor and recordkeeper is Aon Hewitt and is handled in Neenah, Wisconsin.  The corporate trustees are BlackRock, Inc. and Northern Trust.

One of the key concerns is also that the plan only has 23 investment options which is common for most 401k type plans.

Most 401k, Profit Sharing or ESOP plans do not have active management so there is really no one specifically guiding the plan investments. What this means is that like most traditional investment companies, in the event of a severe downturn the investment advisors have no method for moving to a lower risk profile automatically.

With the WealthSentry system we participate in, retiree’s accounts are automatically re-balanced to lower risk portfolios in the event of an economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.

For an in depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.

Wishing you the best.

Doug Reed, CRPC, AAMS

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