PROCTER & GAMBLE TO SLASH 7,000 JOBS IN MAJOR RESTRUCTURING AMID TARIFF PRESSURES

Fri 06 June 2025:

U.S. consumer goods giant Procter & Gamble (P&G) on Thursday revealed its plan to eliminate 7,000 non-manufacturing jobs, approximately 15 percent of its current total non-manufacturing workforce.

The reduction of workforce will take place over the next two fiscal years staring from July 1, 2025, according to a release by P&G.

“Specific impacts by region or site are not available at this time,” the company added.

In response to the job cuts, P&G stated, “As always, employee separations will be managed with support and respect, and in line with our principles and values and local laws.”

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This initiative is part of a broader strategy to accelerate growth and value creation by enhancing productivity across the company’s portfolio, supply chain, and organization design. This move is expected to result in pre-tax charges between one billion U.S. dollars and 1.6 billion U.S. dollars over the next two fiscal years, according to the release.

P&G plans to divest certain brands and product categories, particularly in markets where it faces economic challenges. Additionally, P&G aims to enhance supply chain efficiency by right-sizing and right-locating production. The company also intends to create a more agile organizational structure, incorporating digitization and automation to drive further efficiency gains.

The announcement was made during the 2025 Deutsche Bank Global Consumer Conference, where P&G’s executives emphasized the importance of these strategic adjustments in maintaining the company’s competitive edge in the consumer goods industry.

The restructuring does not remove the near-term challenges facing P&G now, according to P&G Chief Financial Officer Andre Schulten.

Current tariffs would result in a three cent to four cent-per-share drag on P&G’s earnings in its fiscal fourth-quarter ending on June 30, according to Schulten.

Tariffs also are expected to cost the company 600 million U.S. dollars in fiscal year 2026, which starts from July 1, 2025.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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