Procter & Gamble announces plans to layoff 6% of workforce despite increasing profits
Procter & Gamble, the multinational corporation behind brands such as Gillette and Pampers, has announced a restructuring programme that will result in up to 7,000 jobs being cut over the next two years.
The Ohio -based manufacturing giant revealed the plans during a strategy update on Thursday.
It said that the cuts would primarily affect its non-manufacturing workforce, reducing it by approximately 15 per cent.
The total number of affected roles represents about 6 per cent of P&G's global workforce.
According to the company, this two-year restructuring programme aims to drive "efficiencies, faster innovation, and cost reduction".
P&G said it is not currently specifying how the plans would affect local staff, including which regions or roles would be impacted.
The company hired about 108,000 employees at the end of June 2024. Around half of those were in manufacturing roles, and more than a quarter were based in the US.
P&G makes a range of household brands including Ariel, Oral-B, Always and Tampax, as well as hair care brands Head & Shoulders and Herbal Essences.
P&G recently said it was exposed to risks in the global economic environment, including new and increased tariffs, particularly between the US and China.
This is because its products are sold in countries around the world, so it is likely to be affected by increased costs for importing goods.
It has said it could continue to raise prices on some brands to mitigate the impact of cost increases, which it admitted could have a knock-on effect on demand and sales.
Tariffs hit consumers' wallets
Americans are planning to spend less money this summer due to the impact of President Donald Trump's trade tariffs, according to surveys, polling, and media reports.
In a survey by the personal finance company WalletHub, 45 per cent of respondents said that tariffs were affecting their travel plans.
Meanwhile, while nearly two in three said they planned to spend less money this summer than they did last year.
A survey of 1,516 US consumers by the accounting giant KPMG in April found that 50 per cent were cutting back spending due to tariffs and more than 70 per cent expect a recession within the next 12 months.
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