Kimberly-Clark begins shutting down its Nigerian operations, laying off nearly 90% of its workforce after announcing its exit. The company cites strategic global priorities and local economic challenges.
Kimberly-Clark, the American multinational company known for Huggies diapers, has started shutting down its operations in Nigeria just three days after announcing its exit. Nearly 90% of its employees have been laid off, according to a source with direct knowledge of the matter.
During a company-wide meeting last Friday, approximately 150 workers were informed about the layoffs. Kimberly-Clark's Nigerian operations have been relatively small due to high automation and outsourcing sales and distribution to Multipro. The Danish shipping company, Maersk, handled its imports and exports.
The remaining employees will be laid off once the exit is fully completed. Kimberly-Clark’s communications manager did not immediately respond to requests for comment.
Although the company did not provide a specific timeline for its exit plan initially, the ongoing actions indicate a swift closure of its operations. The company will write off its $100 million investment in a manufacturing facility launched in Lagos in 2022. Additionally, Kimberly-Clark will cease manufacturing and marketing its Huggies and Kotex products in Nigeria.
In a statement last Friday, Kimberly-Clark cited "recently refocused company strategic priorities globally as well as economic developments in the country" as reasons for exiting Nigeria.
After nearly 15 years in Nigeria, Kimberly-Clark's departure underscores the challenges faced by manufacturers in the country, such as low consumer spending, high electricity costs, and foreign exchange scarcity. Other multinational companies like Unilever, GSK, and PZ Cussons have also reduced or ended their operations in Nigeria due to similar difficulties.
