Procter & Gamble Announces Job Cuts Amid Restructuring for Stability

In a significant move, Procter & Gamble announced job reductions that will affect approximately 15% of its non-manufacturing workforce. This decision was revealed by Chief Financial Officer Andre Schulten during the Deutsche Bank Consumer Conference held in Paris on Thursday. Restructuring for Future Stability According to Schulten, the company's restructuring program aims to bolster its long-term operational goals. He emphasized that "this restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years." However, he cautioned that it does not alleviate the immediate challenges the company faces in the current market environment. Additional Changes and Product Strategy As part of this restructuring initiative, Procter & Gamble plans to discontinue sales of certain products in selected markets. Further details on these changes are expected to be announced in July. Workforce Overview and Economic Considerations In June 2024, Procter & Gamble's global workforce was approximately 108,000 employees. The company is positioning itself to tackle not only internal restructuring issues but also external pressures such as tariffs. During an April conference call, the firm highlighted that it was facing significant tariff-related costs, particularly for raw and packaging materials sourced from China. To address these costs, the company is exploring different sourcing options and productivity enhancements, although it may still necessitate price increases on some products. Tariff Impacts on the Industry The Consumer Brands Association, representing major food and consumer product companies, including Procter & Gamble, expressed concerns over tariff impacts. While many of these companies manufacture a large portion of their products domestically, they are still subject to import tariffs on essential ingredients that are not abundantly available in the U.S., such as wood pulp for toilet paper and cinnamon. Volvo Cars announces that it will be slashing 3,000 jobs to cut costs Eurozone unemployment drops to record low levels in April