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.
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.”
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