Latest news with #AndreSchulten
Express Tribune
4 days ago
- Business
- Express Tribune
P&G to cut 7,000 jobs, exit brands
Listen to article Procter & Gamble will cut 7,000 jobs over the next two years as the Tide detergent maker contends with an uncertain spending environment, fuelled in part by US tariffs that have roiled numerous consumer companies. The world's largest consumer goods company also plans to exit some product categories and brands in certain markets, including some potential divestitures, as part of the broader two-year restructuring plan. "This is not a new approach, rather an intentional acceleration of the current strategy ... to win in the increasingly challenging environment in which we compete," executives said at a Deutsche Bank Consumer Conference in Paris on Thursday. The job cuts amount to about 6% of its workforce, which P&G characterised as part of its ongoing strategy. Notably, CFO Andre Schulten and operations head Shailesh Jejurikar said at the conference that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." President Donald Trump's sweeping levies on trading partners have shaken global markets and sparked concerns of a recession in the United States. P&G on Thursday estimated about a $600 million before-tax hit in its fiscal year 2026, based on current tariff rates. The rates have frequently changed over the past few months. Overall, the trade war has cost companies at least $34 billion in lost sales and higher costs, a Reuters' analysis showed.
Hans India
5 days ago
- Business
- Hans India
P&G to cut 7,000 jobs in two years, cites tough times
New Delhi: FMCG major Procter & Gamble on Thursday announced it would reduce 7,000 jobs, or about 15 per cent of its current non-manufacturing positions, globally over the next two years. The company said employee separations will be managed with support and respect, and 'in line with our principles and values and local laws'. 'Specific impacts by region or site are not available at this time. Plans will be implemented over the next two fiscal years, allowing us appropriately sequence the delivery of important innovation and operational projects,' said the company in a statement. 'We're continuing our strong track record of cash return to shareowners. Over the first three quarters of fiscal year 2025, P&G has returned more than $13 billion dollars to shareowners through dividends and share repurchases,' said Andre Schulten, Chief Financial Officer, and Shailesh Jejurikar, Chief Operating Officer, at the 2025 Deutsche Bank Global Consumer Conference.
Fashion Network
5 days ago
- Business
- Fashion Network
Procter & Gamble to cut 7,000 jobs, exit brands as consumer uncertainty weighs
Procter & Gamble will cut 7,000 jobs over the next two years, as the Tide detergent maker contends with an uncertain spending environment, fueled in part by U.S. tariffs that have roiled numerous consumer companies. The world's largest consumer goods company also plans to exit some product categories and brands in certain markets, including some potential divestitures, as part of the broader two-year restructuring plan. "This is not a new approach, rather an intentional acceleration of the current strategy ... to win in the increasingly challenging environment in which we compete," executives said at a Deutsche Bank Consumer Conference in Paris on Thursday. The job cuts amount to about 6% of its workforce, which P&G characterized as part of its ongoing strategy. Notably, CFO Andre Schulten and operations head Shailesh Jejurikar said at the conference that the geopolitical environment was "unpredictable" and that consumers were facing "greater uncertainty." President Donald Trump 's sweeping levies on trading partners have shaken global markets and sparked concerns of a recession in the United States. P&G on Thursday estimated about a $600 million before-tax hit in its fiscal year 2026, based on current tariff rates, a number that has frequently shifted. Overall, the trade war has cost companies at least $34 billion in lost sales and higher costs, a Reuters analysis showed. In April, P&G said it would raise prices on some products, and Schulten said it was prepared to "pull every lever" in its arsenal to mitigate the impact of tariffs - primarily through higher prices and cost-cutting. "The two-year window ... gives them some flexibility in terms of timing and depth of cuts, as the tariff situation is very fluid," said Christian Greiner, senior portfolio manager at F/m Investments that owns shares in P&G. The restructuring will help simplify the organizational structure by "making roles broader" and "teams smaller", P&G said. The Pampers maker imports raw ingredients, packaging materials and some finished products into the U.S. from China. About 90% of what it sells is produced domestically, P&G has said. The company had about 108,000 employees as of June 2024. The job cuts would account for roughly 15% of its non-manufacturing workforce. P&G expects to record charges of $1 billion to $1.6 billion before-tax over the two-year period, with a quarter of the charges expected to be non-cash. Shares of the company were down about 2% in early trading. The stock has been largely flat over the past 12 months.
The Star
5 days ago
- Business
- The Star
Procter & Gamble to cut 7,000 jobs as part of restructuring program
NEW YORK, June 5 (Xinhua) -- U.S. consumer goods giant Procter & Gamble (P&G) on Thursday revealed its plan to eliminate 7,000 non-manufacturing jobs, approximately 15 percent of its current total non-manufacturing workforce. The reduction of workforce will take place over the next two fiscal years staring from July 1, 2025, according to a release by P&G. "Specific impacts by region or site are not available at this time," the company added. In response to the job cuts, P&G stated, "As always, employee separations will be managed with support and respect, and in line with our principles and values and local laws." This initiative is part of a broader strategy to accelerate growth and value creation by enhancing productivity across the company's portfolio, supply chain, and organization design. This move is expected to result in pre-tax charges between one billion U.S. dollars and 1.6 billion U.S. dollars over the next two fiscal years, according to the release. P&G plans to divest certain brands and product categories, particularly in markets where it faces economic challenges. Additionally, P&G aims to enhance supply chain efficiency by right-sizing and right-locating production. The company also intends to create a more agile organizational structure, incorporating digitization and automation to drive further efficiency gains. The announcement was made during the 2025 Deutsche Bank Global Consumer Conference, where P&G's executives emphasized the importance of these strategic adjustments in maintaining the company's competitive edge in the consumer goods industry. The restructuring does not remove the near-term challenges facing P&G now, according to P&G Chief Financial Officer Andre Schulten. Current tariffs would result in a three cent to four cent-per-share drag on P&G's earnings in its fiscal fourth-quarter ending on June 30, according to Schulten. Tariffs also are expected to cost the company 600 million U.S. dollars in fiscal year 2026, which starts from July 1, 2025.
Yahoo
5 days ago
- Business
- Yahoo
The Procter & Gamble Company Plans to Reduce its Workforce by up to 7,000 Due to Economic Challenges and Tariff Impacts
The Procter & Gamble Company (NYSE:PG) plans to cut up to 7,000 jobs— about 6% of its global workforce— over the next two years as it faces rising tariff costs and growing consumer concern over the economy. The cuts, announced at a Deutsche Bank consumer conference in Paris, will affect around 15% of the company's non-manufacturing staff, according to CFO Andre Schulten. He made the following comment: '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.' This move is part of a larger restructuring plan, which also includes pulling some products from select markets. More information on those changes is expected in July. Like many companies, The Procter & Gamble Company (NYSE:PG) is seeing cautious spending from US consumers due to inflation. In April, the company highlighted that the biggest tariff pressures were tied to raw materials, packaging, and some finished goods from China. While it is exploring new sourcing options and productivity improvements, it also signaled that price increases on certain products might be necessary. While we acknowledge the potential of PG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
