Tylenol-maker Kenvue on Tuesday beat Wall Street estimates for fourth-quarter results and announced a global workforce reduction, as it proceeds toward a planned takeover by Kimberly-Clark.
Kenvue said its board has approved a plan to optimise its operating model, resulting in a net reduction of its global workforce by about 3.5 percent. The company had about 22,000 employees as of last year.
Kleenex-maker Kimberly-Clark in early November proposed buying Kenvue for more than $40 billion to create a global consumer health company with brands like Band-Aid and Huggies diapers.
The merger is expected to close in the second half of 2026.
The company’s quarterly results highlight a turnaround for the company, on strength in its self-care and essential health segments.
“We ended 2025 with stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as a more favourable year-ago comparison on sales,” said CEO Kirk Perry.
Kenvue’s largest segment, self-care — home to brands such as Tylenol and Benadryl — reported a 1.5 percent increase in net sales to $1.59 billion, beating estimates of $1.52 billion, according to data compiled by LSEG.
The company said consumption and share performance trends for Tylenol improved in December.
Its essential health unit, which houses brands such as Listerine and Band-Aid, brought in net sales of $1.15 billion in the quarter, a 6.1 percent rise year-over-year. This compares to the analysts’ average estimate of $1.12 billion.
The company’s fourth-quarter net sales rose 3.2 percent to $3.78 billion, above analysts’ consensus of $3.68 billion.
The Band-Aid maker posted a quarterly adjusted profit of 27 cents per share, while analysts estimated 22 cents per share.
The planned job cuts are expected to result in pre-tax restructuring expenses and other charges totalling about $250 million in 2026, Kenvue said.
By Gnaneshwar Rajan, Sneha S K
Kimberly-Clark to Buy Tylenol Owner Kenvue in $40 Billion Deal
Kimberly-Clark Corp. agreed to buy Kenvue Inc. in a cash and stock deal that values the consumer-health company that owns brands like Tylenol at about $40 billion.
