Today international paper products manufacturer, Kimberly-Clark, announced that it may close up to 10 plants worldwide and reduce their workforce by 5,500 people. Despite having plants in 35 different countries and I would assume markets in far more…they are blaming the slow growth rate in the United States as part of the problem…and universal bogey man Amazon as another. This is a cause of concern in Wisconsin because KC has a number of facilities here that might be affected.
But here’s the interesting take away:
Chief Financial Officer Maria Henry said on a conference call that savings from the recent federal tax cut would help fund the cost reductions. It “provides us the flexibility” to do so, she said.
Whoa, wait a minute! Weren’t the tax cuts going to spur investment and increase jobs? I wonder what Representative James Sensenbrenner (R-WI) thinks?