Kimberly-Clark Wraps Up Nigerian Exit After Layoffs

Huggies diaper maker Kimberly-Clark is swiftly shutting down its Nigerian operations following its exit announcement last week. Nearly 90% of the company’s workforce was laid off at a company meeting last Friday, according to an informed source.

The layoffs impacted a relatively small number due to the factory’s high automation. Sales and distribution were outsourced to Multipro, while Maersk handled imports and exports. The remaining employees will be let go as the exit process concludes.

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Kimberly-Clark has not yet responded to a request for comment.

This swift action signifies the company writing off its $100 million investment in a Lagos factory opened in 2022. Production and sales of Huggies and Kotex products in Nigeria will cease entirely.

The company cited “recently refocused company strategic priorities globally as well as economic developments in the country” as reasons for their departure.

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Kimberly-Clark’s exit after nearly 15 years reflects the challenges of manufacturing in Nigeria. Companies grapple with weak consumer spending, high electricity costs, and foreign exchange scarcity. This has led to scaling back or complete market exits by multinationals like Unilever, GSK, and PZ Cussons.

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