Procter & Gamble announced on Thursday plans to eliminate up to 7,000 jobs, representing 15% of its non-manufacturing staff, as part of a comprehensive restructuring initiative set to unfold over the next two years.
The company emphasized that employee separations would be handled with care and adherence to its guiding principles and applicable local regulations. However, specific details regarding the impacts by region or site have yet to be disclosed.
This significant restructuring plan arises as major consumer goods companies, including P&G and Unilever, anticipate subdued demand in 2025, driven by increasing uncertainties related to U.S. tariff policies.
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“This is not a new approach; rather, it represents an intentional acceleration of our existing strategy to excel in a more challenging competitive landscape,” remarked P&G executives at the Deutsche Bank Consumer Conference in Paris on Thursday.
To facilitate these organizational changes, P&G aims to broaden roles, streamline teams for efficiency, and enhance job satisfaction, including the incorporation of digitalization and automation in its processes.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PG | PROCTER & GAMBLE CO. | 163.83 | -2.13 | -1.28% |
The restructuring includes plans to reposition its product portfolio, which may involve withdrawing from specific categories, brands, or products in certain regions, and potentially divesting brands.
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According to the company, these portfolio adjustments are expected to yield multiple benefits, including efficiency gains, expedited innovation, and reduced costs across its supply chain.
P&G acknowledged the significant challenges ahead: “Consumers are facing greater uncertainty, competition is intense, the geopolitical landscape is unstable, and technological advancements are transforming daily life at an accelerated pace.” The company also pointed to opportunities for substantial growth by better serving currently neglected markets, exploring new segments, and elevating existing markets to best-in-class standards.
P&G underscored that a “disciplined execution of our integrated growth strategy and an even more rigorous resource allocation” would be essential for navigating the impending challenges and capitalizing on growth opportunities.
The manufacturer of Tide laundry detergent and Pampers diapers employed approximately 108,000 individuals as of June 2024.
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The company anticipates incurring charges between $1 billion and $1.6 billion before tax during the next two years, with roughly 25% of these charges expected to be non-cash.
Reuters contributed to this report.
