By Stribrohorak (Own work) [CC BY-SA 3.0], via Wikimedia Commons
Vocabulary:
- overhead expenses [OH-ver-HED ik-SPENS]
- corporate tax [KAWR-per-it taks]
- restructure [ree-STRUHK-cher]
- upheaval [uhp-HEE-vuhl]
- par [pahr]
(noun) ongoing expenses of a company
The increase on their overhead expenses directly affected their income.
(noun) tax imposed on the net income of a company
They rallied against the new corporate tax reform.
(verb) to reorganize a company
The bill restructured a complicated system of deductions.
(noun) a sudden change
The strike caused much political upheaval.
(noun) an equality in value or standing
Marketers need to promote products to be at par with competitors.
Kimberly Clark is laying off 13% of its workforce. The company is planning to cut between 5,000 to 5,500 jobs in an effort to reduce overhead expenses. They will use their savings from corporate tax to help pay for the cuts and other restructuring moves. Thomas Falk, the CEO, stated that this move would make the company “leaner, stronger and faster”.
The pressure on Kimberly Clark reflects the upheaval in the retail industry. Big players such as Amazon and Walmart are driving down prices for household items. Thus, Kimberly Clark has to offer prices at par with its competitors. Another complication is the stagnant value of the company’s shares. Falk admitted that the said conditions will continue in the following term, so the company needs to seek ways to boost profits.
True or False:
- Kimberly Clark will terminate 31% of its employees.
- Big retail companies like Amazon, are causing the inflation in household items.
- Thomas Falk wants Kimberly Clark to be a better company.
- Kimberly Clark is finding other means to help pay for cuts and restructuring.
- Kimberly Clark increased their prices to stay competitive.
Discussion Questions:
- What is your opinion about companies laying off their employees?
- How can a company fully compensate a laid off employee?
- Can a company avoid laying off employees? Please explain your answer.
- In your opinion, how can a company like Kimberly Clark increase their profits?
- Would you rather buy products from a big business or a small business? Cite your reasons.
Express Your Opinion:
- “One way to reduce the need for layoffs would be to cut back on hours, spreading the available work among more employees.”- Adam Cohen
- “Any system that values profit over human life is a very dangerous one indeed.”- Suzy Kassem
- “Always treat your employees exactly as you want them to treat your best customers.”- Stephen Covey