Kimberly-Clark, the American multinational known for manufacturing Huggies diapers, has commenced the process of closing down its operations in Nigeria, just three days after announcing its decision to exit the country. According to an insider, nearly 90% of the workforce has already been laid off.
Approximately 150 employees were informed about the layoffs during a company-wide meeting held last Friday.
Due to a high level of automation, Kimberly-Clark’s factory in Nigeria had a relatively small number of employees. Sales and distribution were outsourced to Multipro, while Maersk handled imports and exports.
The remaining employees will eventually be let go as the exit process is finalized. The company’s $100 million investment in a manufacturing facility launched in Lagos in 2022 will be written off, and the production and marketing of Huggies and Kotex products will cease in Nigeria.
Kimberly-Clark cited recently refocused global strategic priorities and economic developments in Nigeria as reasons for its exit.
This move reflects the challenges faced by manufacturers in Nigeria, including reduced consumer spending power, high electricity costs, and foreign exchange scarcity.
Other multinational companies, such as Unilever, GSK, and PZ Cussons, have also scaled back or completely exited certain market segments in the country.
