Procter & Gamble to Cut 15% of Workforce Amid Economic Challenges

In a significant move that reflects ongoing challenges in the global economy, Procter & Gamble has announced plans to reduce its workforce by approximately 15%. This decision was revealed during the Deutsche Bank Consumer Conference held in Paris, where Chief Financial Officer Andre Schulten outlined the company's strategic response to current market conditions. Schulten emphasized the need for this restructuring, stating, “This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years. It does not, however, remove the near-term challenges that we currently face.” The job cuts, affecting around 3,000 employees, are part of a broader initiative aimed at cost reduction and operational efficiency. As of June 2024, Procter & Gamble employed approximately 108,000 individuals worldwide. In addition to workforce reductions, the company plans to discontinue the sales of certain products in specified markets, with more details expected to be shared in July. This contraction in the workforce comes amid pressing economic challenges, including rising tariffs. Procter & Gamble has indicated that it is significantly impacted by tariffs on raw materials and finished goods imported from China. In light of these pressures, the company is exploring alternative sourcing options and enhancing productivity measures to alleviate the burden of increased costs, which may lead to price hikes on some items. The Consumer Brands Association, which advocates for major food and consumer goods companies like Procter & Gamble, has also expressed concerns. They highlighted that while many products are manufactured domestically, critical ingredients still face import tariffs due to limited availability in the U.S.Volvo Cars announces that it will be slashing 3,000 jobs to cut costs Eurozone unemployment drops to record low levels in April