P&G Job Cuts: 7,000 Roles Eliminated in Restructuring
- Consumer goods giant Procter & Gamble (P&G) will reduce its non-manufacturing workforce by approximately 7,000 positions, or 15%, over the next two years.the move is part of a...
- andre Schulten, P&G's CFO, revealed the planned job cuts at the Deutsche Bank Consumer Conference.
- The company faces headwinds in its largest market,the U.S., where organic sales grew by only 1% in the fiscal third quarter.Tariffs are projected to negatively impact fiscal fourth-quarter...
procter & Gamble is set to eliminate 7,000 jobs in a notable restructuring, a move revealed amid tariff pressures and a slowdown in U.S. market growth. P&G, the consumer goods giant, cites these challenges as primary drivers behind cutting approximately 15% of its non-manufacturing workforce over the next two years.The company is also grappling with impacts to its fiscal 2026 earnings due to these escalating tariffs. The planned restructuring is part of a broader strategy to streamline operations and address emerging economic concerns. News Directory 3 is closely monitoring these corporate decisions. As they reveal further details, we will follow what’s happening with the company’s portfolio, supply chain, and overall corporate structure. Discover what’s next for this restructuring plan and its implications.
Procter & Gamble Announces Job Cuts Amid Restructuring
Updated June 7, 2025
Consumer goods giant Procter & Gamble (P&G) will reduce its non-manufacturing workforce by approximately 7,000 positions, or 15%, over the next two years.the move is part of a broader restructuring program intended to streamline operations and address challenges including slowing growth and the impact of tariffs.
andre Schulten, P&G’s CFO, revealed the planned job cuts at the Deutsche Bank Consumer Conference. As of June 30, the company employed 108,000 individuals globally. The tariff pressures, attributed to policies enacted under President donald Trump, have prompted P&G to raise prices to offset increased costs. These trade tensions have fueled concerns regarding the overall health of the U.S. economy and the job market.
The company faces headwinds in its largest market,the U.S., where organic sales grew by only 1% in the fiscal third quarter.Tariffs are projected to negatively impact fiscal fourth-quarter earnings by 3 to 4 cents per share, Schulten said. Looking ahead, P&G anticipates a $600 million pre-tax hit from tariffs in fiscal 2026.
Beyond job reductions, P&G, known for brands like Pampers, Tide, and Swiffer, is undertaking a comprehensive review of its portfolio, supply chain, and corporate structure. Further details,including potential brand and market exits,are expected during the company’s fiscal fourth-quarter earnings call in July. The reorganization is projected to incur non-core costs of $1 billion to $1.6 billion before taxes.
“This restructuring program is an meaningful step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten said. “It does not, however, remove the near-term challenges that we currently face.”
P&G’s declaration follows similar moves by othre major U.S. employers, including Microsoft and Starbucks. Investors are closely monitoring economic indicators, including Friday’s nonfarm payrolls report, for signs of a potential slowdown in the job market due to the tariffs.
What’s next
P&G’s investors and the broader market will be watching for further details on the company’s restructuring plans during the fiscal fourth-quarter earnings call in July. the company’s performance and strategic adjustments will be key indicators of its ability to navigate economic headwinds and maintain long-term growth.