Procter & Gamble Slashes 7k Jobs in Overhaul of Non-Core Operations 💸💼
Major layoffs announced by Procter & Gamble: 7,000 positions to be eliminated.
In an effort to slim down and streamline, global consumer goods juggernaut Procter & Gamble (P&G) is axing roughly 7,000 positions – around 15% of its non-manufacturing workforce – from its non-core operations. This major shakeup was revealed at a Deutsche Bank event [1][2][3].
The move comes as the company promises to scale back in certain product categories and haul out of certain markets, while also considering the sale of some lesser-performing brands.
P&G's lineup boasts popular brands like "Lenor" and "Ariel" detergents, "Pampers" diapers, and "Braun" razors [1]. In total, the company employs a whopping 100,000 people [1].
The overhaul is part of a bigger initiative to transform P&G's operations, with an emphasis on embracing digitalization and automation to broaden roles and shrink teams where possible [2][3]. The aim? To make work more fulfilling while improving overall efficiency.
The restructuring plan also takes into account recent market challenges, such as increasing pressure from market conditions that have resulted in muted demand and U.S. tariffs affecting earnings [2][3]. Due to tariffs, P&G expects earnings to take a 3 cent to 4 cent hit in the fourth quarter [3].
The plan, expected to cost between $1 billion and $1.6 billion, is expected to span the course of two years, starting with the company's next fiscal year [3].
[1] ntv.de
[2] rts
[3] Reuters
The Commission has not yet adopted a decision regarding Procter & Gamble's decision to slash 7,000 jobs, despite the company focusing on finance strategies in its business overhaul, aiming to improve overall efficiency and make work more fulfilling through digitalization and automation. The restructuring plan, expected to cost between $1 billion and $1.6 billion, is expected to affect approximately 15% of Procter & Gamble's non-manufacturing workforce.
