By Stribrohorak (Own work) [CC BY-SA 3.0], via Wikimedia Commons
Pre-reading questions:
- What are some common reasons for firing employees?
- Why do employees quit their job?
Vocabulary:
- lay off [ley awf]
- stiff competition [stif kom-pi-TISH-uhn]
- worldwide [WURLD-WAHYD]
- birthrate [BURTH-reyt]
- budget cut [BUHJ-it kuht]
(phrasal verb) to end someone’s employment
The firm had to lay off some of their workers.
(noun) strong competition from rivals
You’ll be facing a lot of stiff competition at the games.
(adjective) happening all over the world
Our company has 2,000 employees worldwide.
(noun) the number of births in a year or place
Low birthrate is a big problem for some countries.
(noun) the act of reducing the amount of money a company has to spend
All schools are expected to manage their budget.
Kimberly Clark, the maker of Huggies and Kleenex, will lay off 13% of its employees. The company stated that it would lay off at least 5000 employees this year. They are doing this to reduce their expenses. Kimberly Clark faces a stiff competition from retail companies such as Amazon and Walmart. Amazon and Walmart are reducing prices for household items. This move has affected Kimberly Clark.
Kimberly Clark also stated that the job cuts will affect all their businesses worldwide. Thus, the company is also closing down at least 10 factories. One particular problem is the diaper sales in the United States which is declining. This may be because of the low birthrate in the US. Still, Kimberly Clark remains hopeful that they will save up to $550 million from the budget cut.
Comprehension Questions:
- How many employees will Kimberly Clark lay off?
- Why will Kimberly Clark lay off some of their employees?
- Why was there a decline in diaper sales in the US?
- How much will Kimberly Clark save from the budget cut?
- Who are the competitors of Kimberly Clark in retail?
Discussion Questions:
- How do you feel about companies laying off their employees?
- Do you think it is fair for companies to lay off their employees? Please explain your answer.
- How should companies compensate laid off employees?
- If you were the head of Kimberly Clark, would you do the same thing? Why or why not?
- In your opinion, why is the birthrate declining in some countries?