Procter & Gamble to Cut 7,000 Nonmanufacturing Jobs Amid Cost-Cutting Efforts
Procter & Gamble, the multinational consumer goods giant behind popular brands like Pampers, Gillette, Crest, and Tide, has announced plans to cut around 7,000 jobs as part of a broader restructuring initiative. The move makes P&G the latest major company in the consumer sector to implement significant workforce reductions.
The announcement was made on Thursday during the Deutsche Bank Global Consumer Conference in Paris. Chief Financial Officer Andre Schulten stated that the company aims to eliminate approximately 15% of its nonmanufacturing workforce. These layoffs are part of an ongoing strategy to improve operational efficiency and reduce costs amid a changing economic landscape.
The job cuts are expected to impact office-based roles across various departments and regions. P&G clarified that the reductions will not affect positions tied to its manufacturing operations, which remain a core component of the company’s global supply chain.
Schulten emphasized that the company is focusing on streamlining processes and reallocating resources to areas that drive growth and innovation. “This is about aligning our organizational structure to better support our strategic priorities,” he said during the conference.
Procter & Gamble joins a growing list of global corporations, including competitors in the consumer goods industry, that are adjusting their workforce in response to rising costs, shifts in consumer behavior, and ongoing economic uncertainty.
The company’s stock (PG) dropped 1.76% following the announcement, reflecting investor caution. Meanwhile, shares of other industry players like Unilever saw only minor fluctuations.
P&G, headquartered in Cincinnati, Ohio, employs more than 100,000 people worldwide. The company has been facing mounting pressure to maintain profit margins as inflation affects both production costs and consumer spending. In recent years, it has implemented several cost-control measures, including price adjustments and supply chain optimizations.
With this latest move, Procter & Gamble signals a more aggressive push toward organizational agility and financial discipline, aiming to stay competitive in an increasingly volatile market. Further details on the timeline and specific departments affected by the layoffs are expected to emerge in the coming weeks.
