Kimberly-Clark Corporation has announced actions designed to improve its competitive position and become a stronger, faster, and leaner organisation. The company said it will reduce its worldwide salaried workforce by approximately 1,600 positions by the end of the year.

Reductions in the workforce will come from all regions and business segments of Kimberly-Clark's global operations and will primarily affect salaried and non-production jobs. The company does not plan to close any of its manufacturing facilities as part of these actions.

In light of the challenging business environment, the company previously indicated it was preparing plans to streamline its organisation and that it would also accelerate its cost reduction programmes, particularly for sourcing and supply chain activities.

It is expected that the organisational changes will generate annualised pre-tax savings of about $150 million, further strengthening Kimberly-Clark's profitability and cash flow. Anticipated savings of approximately $60 million, or 10 cents per share, will benefit the company's results during the second half of 2009. Severance and related costs to streamline the organisation will be recorded during the second, third and fourth quarters of the year, totaling $140 million to $150 million pre-tax, equivalent to about 25 cents per share. Approximately $110 million of the costs will be recorded in the second quarter.

"These actions, while difficult, are necessary to help us emerge from this demanding economic environment as a stronger company," said Tom Falk, Kimberly-Clark Chairman and CEO, announcing the moves. "Through these changes we will be a more effective organisation, with faster decision-making helping to drive efficiency throughout all aspects of our operations. In addition, by increasing our cash generation, we will be in a better position to take advantage of future growth and innovation opportunities."

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people - nearly a quarter of the world's population - trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, the company holds the No. 1 or No. 2 share positions in more than 80 countries.

www.kimberly-clark.com