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Time of India
5 days ago
- Business
- Time of India
Procter & Gamble to cut 7,000 jobs to rein in costs as tariff uncertainity looms
HighlightsProcter & Gamble announced plans to cut 7,000 jobs, approximately 6% of its workforce, over the next two years as part of a restructuring strategy to address fluctuating consumer demand and rising costs due to tariff uncertainties. The restructuring plan will involve exiting certain product categories and brands, with potential divestitures, to simplify the organizational structure and reduce costs amid challenging market conditions. The company is responding to the unpredictable geopolitical environment and increased consumer uncertainty, with a focus on pricing adjustments and cost cuts to mitigate the impact of tariffs imposed by the Trump administration. Procter & Gamble said on Thursday it would cut 7,000 jobs, or about 6%, of its total workforce over the next two years, as part of a new restructuring plan to counter uneven consumer demand and higher costs due to tariff uncertainty. The world's largest consumer goods company also plans to exit some product categories and brands in certain markets, executives said at a Deutsche Bank Consumer Conference in Paris, adding the program could likely include some divestitures without giving detail. The Pampers maker's two-year restructuring plan comes when consumer spending is expected to remain pressured this year, and global consumer goods makers including P&G and Unilever brace for a further hit to demand from even higher prices. "This is not a new approach, rather an intentional acceleration of the current win in the increasingly challenging environment in which we compete," executives said. President Donald Trump's sweeping tariffs on trading partners have roiled global markets and led to fears of a recession in the U.S., the biggest market for P&G. The company imports raw ingredients, packaging materials and some finished products into the U.S. from China. Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, a Reuters analysis showed, a toll that is expected to rise. In April, the Tide detergent maker said it would raise prices on some products and that it was prepared to pull every lever in its arsenal to mitigate the impact of tariffs. Pricing and cost cuts were the main levers, CFO Andre Schulten had said then. On Thursday, Schulten and P&G's operations head Shailesh Jejurikar acknowledged that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." The company had about 108,000 employees as of June 30, 2024, and said the job cuts would account for roughly 15% of its non-manufacturing workforce. P&G added that the restructuring plan would help simplify the organizational structure by "making roles broader" and "teams smaller". The plans to divest certain brands will also help adjust its supply chain in order to reduce costs, P&G said.
Time of India
6 days ago
- Business
- Time of India
US stocks slide lower as investors focus on trade, key jobs data
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Wall Street remains listless on Thursday, as the countdown ticks toward Friday's highly anticipated jobs S&P 500 was 0.3% lower in morning trading. After sprinting through May and rallying within a couple good days' worth of gains of its all-time high, the index at the center of many 401(k) accounts has lost momentum as financial markets wait for the next big trigger to move, up or Dow Jones Industrial Average was down 162 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.2% activity in options markets suggests investors believe the next big move for the S&P 500 could come on Friday, when the U.S. Labor Department will say how many more jobs U.S. employers created than destroyed during May. The expectation on Wall Street is for a slowdown in hiring from April.A resilient job market has been one of the linchpins that's propped up the U.S. economy, and the worry is that all the uncertainty created by President Donald Trump's on-and-off tariffs could cause businesses to freeze their & Gamble, the giant behind such brands as Pampers diapers and Cascade dish detergent, said Thursday it will cut up to 7,000 jobs over the next two years to boost its ability to make profit. Its stock fell 1.7%.A report on Thursday said that more U.S. workers applied for unemployment benefits last week than economists expected. The number still remains relatively low compared with history, but it hit its highest level in eight months.A separate report said that U.S. workers overall produced less stuff per hour during the start of the year than economists expected. The drop in productivity is a potentially discouraging trend for Wall Street, Five Below rallied 10.7% after the retailer, which sells products priced between $1 and $5, reported a stronger profit for the latest quarter than analysts expected. CEO Winnie Park credited broad-based strength across most of its jumped 17.4% after the database company likewise delivered a stronger profit than analysts the losing side of Wall Street was Brown-Forman, the company behind Jack Daniel's and Woodford Reserve. Its profit and revenue for the latest quarter fell short of Wall Street's expectations, and the company said it expects its upcoming fiscal year to be challenging because of 'consumer uncertainty, the potential impact from currently unknown tariffs' and other things. Its stock fell 15.6%.The CEO of PVH, the company behind the Calvin Klein and Tommy Hilfiger brands, likewise cited challenges from 'an increasingly uncertain consumer and macroeconomic backdrop.'Its stock fell 18.4% even though it reported stronger revenue and profit for the latest quarter than analysts expected. The company cut its profit forecast for its full fiscal year, saying it will likely be able to offset only some of the potential hit it will take because of that Trump would lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back after dropping roughly 20% below its record two months ago. But talks are still ongoing, and nothing is assured. In the meantime, many companies have been cutting or withdrawing their forecasts for profit this upcoming year because of all the spoke with China's leader, Xi Jinping, on Thursday amid hopes for progress between the world's two largest economies. The conversation was confirmed by the Chinese foreign ministry, which said Trump initiated the call. The White House did not immediately are also building that the Federal Reserve will need to cut interest rates later this year in order to prop up the economy. Yields took a sharp turn lower on Wednesday after reports came in weaker than expected on the U.S. job market and on activity among U.S. services Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump's tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they also tend to give inflation more yields held steadier on Thursday ahead of Friday's jobs report. The yield on the 10-year Treasury eased to 4.35% from 4.37% late Wednesday after tumbling from 4.46% the day stock markets abroad, indexes were mixed amid modest moves across much of Europe after the European Central Bank cut its main interest rate again, as was widely moves were larger in Asia, where South Korea's Kospi jumped 1.5% after the country's new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a partnership with the U.S. and Japan.
India Today
24-04-2025
- Business
- India Today
Wall Street soars as tech, AI stocks lead amid easing US-China trade tensions
US stocks closed higher on Thursday, extending their rally with a solid boost from technology shares as investors parsed a mixed bag of corporate earnings and watched for signs of progress in the US-China tariff three major US stock indexes rose, with the "magnificent seven" group of artificial intelligence-related megacaps, boosted by AI-powered software firm ServiceNow's better-than-expected quarterly results, giving the Nasdaq the called for cancellation of US tariffs on Chinese goods, following comments from US treasury secretary Scott Bessent signaling the White House could be willing to de-escalate trade tensions that have whipsawed markets for weeks. Easing tariff rhetoric is "part of the reason why you're seeing the chips lead because they've been kind of in the bull's eye in (the trade dispute) between China and the US," said Paul Nolte, senior wealth advisor & market strategist at Murphy & Sylvest in Elmhurst, Illinois. "So any cooling of tariff talks between the two countries bolsters the technology sector as a whole.""There's still a ton of questions around tariffs right now that we really don't have answers to," Nolte added. "So a lot of us are just kind of throwing darts in the dark."advertisementAccording to preliminary data, the S&P 500 gained 108.85 points, or 2.02%, to end at 5,484.71 points, while the Nasdaq Composite gained 452.96 points, or 2.71%, to 17,161.01. The Dow Jones Industrial Average rose 483.28 points, or 1.22%, to 40, first-quarter earnings season hits full stride, the extent to which trade war uncertainties have affected business and consumer sentiment is making itself & Gamble, PepsiCo, Chipotle Mexican and American Airlines all cut or withdrew forecasts due to elevated uncertainty among all guidance was profit was better than analysts expected due to resilient demand for AI-powered software, sending its shares jumped after the toymaker's results beat expectations, helped by the strength of its gaming the 157 companies in the S&P 500 that have reported so far, 74% have beaten expectations, and analysts currently believe aggregate S&P 500 earnings growth of 8.9% year-on-year, up from 8.0% as of April 1, according to the data front, stronger-than-expected new orders for durable goods and rangebound jobless claims painted a picture of economic Read: Russia made 'pretty big concession' by not taking all of Ukraine: Trump
