Andrex firm to shed staff

8:17am Thursday 21st September 2006

A major employer is to shed 135 jobs in the latest example of big firms "outsourcing" services with a view to moving overseas.

Kimberly-Clark has announced it is axing more than a quarter of its 400 workforce at Trafalgar Place in Brighton, sparking outrage from city leaders and trade unions.

The company, which produces a host of brand-name products including Kleenex and Andrex, is cutting thousands of staff worldwide by transferring its accounts and finance functions to other firms in order to cut costs.

At least 2,000 jobs have been axed in Sussex in the past two years by big firms dumping UK offices in favour of cheaper workforces in the developing world.

Kimberly-Clark says it has not decided where the services will be outsourced to but staff have been told it is considering Poland or India among options.

The news comes just a week after Norwich Union announced plans to shed 100 positions at its Worthing office as it offshores much of its business to India.

Brighton Pavilion MP David Lepper said: "It's the second bombshell in a week and I am very surprised at Kimberly-Clark.

"When I opened their offices in 2001 they gushed about their commitment to Brighton and our skilled workforce but those words have proved hollow"

Kimberly-Clark refused to comment on redundancy speculation when approached by The Argus in March but yesterday admitted staff have been aware of the move since July 2005.

Two months ago, it emerged 300 staff at banking giant Barclays in Hastings were facing redundancy as the company moves jobs abroad.

Earlier this year manufacturing company Eurotherm Limited, which employs 200 people in Durrington, Worthing, announced plans to move its manufacturing operation to eastern Europe.

Kimberly-Clark said it was still talking to service providers about transferring jobs but it was unlikely they would remain in Sussex.

Vice-president Simon Newton said: "We understand this is a difficult time for our people in Brighton and we are focused on communicating internally and helping people understand the reason why Kimberly-Clark must move in this direction.

"These changes, while difficult, are necessary as K-C evolves into a more nimble, efficient and effective global organisation."

The company said the final decision on job losses would be made in the next few months.

Mark Turner, of the GMB trade union, said: "It's yet another attempt at driving down costs at the expense of local jobs. It's happening on a worrying scale and will inevitably lead to a growth in unemployment figures."

Business support organisation Sussex Enterprise defended Kimberly-Clark.

Chief executive Mark Froud said: "Many companies find outsourcing functions of the business such as accounting and finance can be a more efficient and economical way of operating. Outsourcing low-paid jobs to overseas countries can also help companies in the UK focus of developing highly-skilled, high value-added jobs which help boost the local economy.

"Fortunately employment levels across most parts of Sussex are currently high and many businesses are crying out for skilled workers."

Editor's Choice