Huggies diaper manufacturer Kimberly-Clark is following through on its exit from Nigeria, with reports indicating a swift shutdown and huge job cuts.
Just three days after announcing its decision to leave the African nation, Kimberly-Clark has begun laying off employees.
Nearly 90% of the company’s Nigerian workforce has been let go, according to an anonymous source familiar with the situation.
A company-wide meeting last Friday informed roughly 150 workers of the layoffs. Kimberly-Clark’s Nigerian operations were known for their relatively small size due to automation and outsourcing practices.
Sales and distribution were handled by Multipro, while Maersk, the Danish shipping giant, managed imports and exports.
The remaining employees will be laid off upon completion of the company’s exit from Nigeria.
While no specific timeline was initially provided, the company’s actions reveal a rapid closure. This includes writing off a $100 million investment in a Lagos manufacturing facility opened in 2022.
Huggies and Kotex products will no longer be manufactured or marketed in Nigeria.
Kimberly-Clark attributed its exit to “recently refocused company strategic priorities globally as well as economic developments in the country.”
Its departure, after nearly 15 years in Nigeria, reiterates the challenges manufacturers face in the nation. These struggles include low consumer spending power, high electricity costs, and difficulty obtaining foreign exchange.
Kimberly-Clark’s exit joins a growing trend, with multinationals like Unilever, GSK, and PZ Cussons having scaled back or entirely exited Nigerian market segments due to similar challenges.
