Home / Business and Economy / Kenvue Beats Estimates, Plans Workforce Cuts Amid Merger Talks
Kenvue Beats Estimates, Plans Workforce Cuts Amid Merger Talks
18 Feb
Summary
- Kenvue exceeded Q4 earnings expectations, boosting self-care and essential health sales.
- The company announced a 3.5% global workforce reduction to optimize operations.
- Kenvue's acquisition by Kimberly-Clark is anticipated to finalize in the second half of 2026.
Kenvue reported exceeding Wall Street's fourth-quarter expectations, demonstrating a turnaround bolstered by its self-care and essential health divisions. The company's net sales increased by 3.2% to $3.78 billion, surpassing the consensus estimate.
During the quarter, Kenvue's self-care segment, featuring brands like Tylenol and Benadryl, saw net sales rise by 1.5% to $1.59 billion. The essential health unit, including Band-Aid and Listerine, reported a 6.1% year-over-year increase in net sales, reaching $1.15 billion.
In conjunction with these positive financial results, Kenvue's board approved a plan to optimize its operating model, leading to a net reduction of about 3.5% in its global workforce. This restructuring is expected to generate approximately $250 million in pre-tax expenses in 2026.
The company is progressing toward a planned takeover by Kimberly-Clark, a deal valued at over $40 billion. This significant merger is anticipated to be finalized in the second half of 2026, aiming to create a substantial global consumer health entity.
