Procter & Gamble to Lay Off 7,000 in Restructuring Effort
Procter & Gamble will lay off about 7,000 employees as part of a two-year restructuring effort.
Executives said at a Thursday conference that it will also make changes to its supply chain and brand portfolio.
The consumer products giant expects tariffs to hit earnings by 3 cents to 4 cents per share in its fiscal fourth quarter.Consumer products giant Procter & Gamble (PG) is planning to trim about 15% of its non-manufacturing workforce, about 7,000 jobs, executives said at a Thursday conference.
CFO Andre Schulten said during an industry conference in Paris that the company plans to start a two-year restructuring program in its next fiscal year, according to a transcript from AlphaSense. The program will include changes to its portfolio and supply chain, along with potential exits from certain brand categories, and the layoffs, with an estimated cost of $1 billion to $1.6 billion.
"We see more opportunities to make growth broader and teams smaller, making work more fulfilling, faster and more efficient, leveraging digitization and automation opportunities," Schulten said. "In doing this, we expect to reduce up to 7,000 non-manufacturing roles, or approximately 15% of our current non-manufacturing workforce."
The executive did not outline any specific brands or segments that Procter & Gamble might exit or divest at the time, but said Procter & Gamble will likely have more details about the plan in its next quarterly earnings, currently expected to take place on July 29.
Apart from the restructure, executives for the owner of Tide, Old Spice, Dawn dish soap and dozens of other products gave new details on the expected impact of tariffs. Procter & Gamble will likely take a hit of 3 cents to 4 cents per share to its earnings in its fiscal fourth quarter, and Schulten said that while the tariff situation could change, the company currently projects a pre-tax headwind of about $600 million if the tariffs are in effect for all of its fiscal 2026.
In its last quarterly report in April, Procter & Gamble posted better profits but lower sales than expected, while lowering its sales and profit targets for the full fiscal year.
Procter & Gamble shares were little changed on Thursday morning, and are down just 1% since the start of the year.
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