Kimberly-Clark to slash 1,600 jobs

Kimberly-Clark Corp. (KMB), maker of Kleenex tissues and Huggies diapers, today announced plans to cut 1,600 jobs, about 3 percent of its workforce. The company is looking to pare costs as consumers, concerned about the economy, abandon pricey branded consumer goods in favor of cheaper private label products.

The company expects the layoffs to result in annualized pre-tax savings of about $150 million. Second half results will benefit from expected savings of $60 million, or 10 cents per share. Approximately $110 million of the costs will be recorded in the second quarter. Between $140 million and $150 million in streamlining costs, about 25 cents per share, will be recorded in the second, third and fourth quarters, according to a statement from the Dallas-based company.