Proctor & Gamble said on Thursday that it will cut up to 7,000 jobs, or 15% of its non-manufacturing workforce, over the next two years as part of a broader restructuring effort.
“As always, employee separations will be managed with support and respect, and in line with our principles and values and local laws,” P&G said. “Specific impacts by region or site are not available at this time.”
The two-year restructuring plan comes as consumer goods giants P&G and Unilever brace for muted demand in 2025, stemming from growing uncertainty due to U.S. tariffs.
DISNEY CUTS HUNDREDS OF TV AND FILM JOBS AMID STREAMING EXPANSION
“This is not a new approach, rather an intentional acceleration of the current strategy…to win in the increasingly challenging environment in which we compete,” P&G executives said at a Deutsche Bank Consumer Conference in Paris on Thursday.
With the organizational changes, P&G said it is seeking to make “roles broader, teams smaller, work more fulfilling and more efficient, including leveraging digitalization and automation.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PG | PROCTER & GAMBLE CO. | 163.72 | -2.25 | -1.35% |
Under the restructuring, it is also looking to adjust its portfolio. That could include exiting some categories, brands and products in certain markets, as well as some possible brand divestitures.
CHEVRON TO LAY OFF APPROXIMATELY 200 EMPLOYEES IN TEXAS IN 2025
Its portfolio changes will help “drive various benefits, including efficiencies, faster innovation, and cost reduction” within its supply chain as well, according to the company.
“Looking ahead, consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable. And technology is rapidly transforming nearly every aspect of daily life,” P&G said. “At the same time, we can unlock significant growth by better meeting the needs of currently unserved and under-served consumers, expanding into new segments, and growing markets to best-in-class levels.”
The company said “disciplined execution of our integrated growth strategy and even more disciplined resource allocation” would help the company pursue “growth opportunities” and deal with “increasing near-term challenges.”
The maker of Tide detergent and Pampers diapers had about 108,000 employees as of June 2024.
MICROSOFT WILL LAY OFF NEARLY 6,000 EMPLOYEES IN PUSH FOR EFFICIENCY
P&G expects to record charges of $1 billion to $1.6 billion before tax over the two-year period, with a quarter of the charges expected to be non-cash.
Reuters contributed to this report.
Read the full article here
