Procter & Gamble Announces Job Cuts

On Thursday, Procter & Gamble revealed plans to eliminate up to 7,000 jobs, which accounts for about 15% of its non-manufacturing workforce, as part of a significant restructuring effort that will unfold over the next two years.

P&G stated, “As always, employee separation is managed with support, respect and in line with our principles, values and local law.” They noted that details regarding specific local impacts are currently not available.

This restructuring initiative comes in light of shifting market conditions, particularly as both P&G and Unilever prepare for dwindling demand stemming from growing uncertainty around U.S. tariffs.

One executive indicated during the Deutsche Bank Consumer Conference in Paris, “This isn’t a new strategy, but rather a deliberate acceleration of what we’re already doing to compete in this increasingly tough environment.”

The company aims to streamline roles, create smaller teams, and enhance efficiency through digitalization and automation. P&G also plans to review its portfolio, which may involve stepping back from some categories and brands.

They believe that these changes can bring a variety of advantages to the supply chain, including improved efficiency and cost savings. In their statement, P&G acknowledged that “looking ahead, consumers are facing greater uncertainty.” They also pointed out that the geopolitical landscape remains unpredictable and that technology is rapidly evolving.

Despite the challenges, P&G sees an opportunity for growth by better catering to currently underserved consumers and exploring new market segments.

The company has around 108,000 employees, with fees expected to reach between $1 billion and $1.6 billion over the course of the restructuring.