Latest news with #JessicaDiNapoli
USA Today
9 hours ago
- Business
- USA Today
Procter & Gamble to cut 7,000 jobs as tariffs and consumer uncertainty loom
Aishwarya Venugopal and Jessica DiNapoli Reuters Procter & Gamble PG.N 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." Need a break? Play the USA TODAY Daily Crossword Puzzle. In case you missed it: Procter & Gamble sees lower sales, higher prices amid Trump trade wars 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. 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. "Spring cleaning at scale, shedding low-growth, low-moat units frees up cash to turbo-charge Tide, Pampers and Old Spice — the core brands," said Michael Ashley Schulman, chief investment officer at Running Point Capital. In the past few years, P&G has exited the Argentina market and restructured its operations in Nigeria. It also divested the Vidal Sassoon hair care brand in China and a few other local brands in Latin America and Europe. The company 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 1% in early trading. The stock has been largely flat over the past 12 months. Reporting by Rishabh Jaiswal, Juveria Tabassum, Aishwarya Venugopal in Bengaluru and Jessica DiNapoli in New York; Editing by Janane Venkatraman, Rashmi Aich and Sriraj Kalluvila
Yahoo
16-05-2025
- Business
- Yahoo
Danone's Oikos yogurt brand enters protein shake market
By Jessica DiNapoli NEW YORK (Reuters) -Danone introduced a new protein shake under its Oikos yogurt brand this week as rivals Coca-Cola's Fairlife and Chobani with similar products gain popularity with consumers and those taking weight-loss drugs such as Wegovy. The company is looking to enter the $7 billion protein shake market, said Shane Grant, deputy CEO of Danone Americas, in an interview last month. "Three-quarters of (U.S. consumers) want more protein in their diet, and GLP-1s are only accelerating this demand," Grant said, referring to the weight-loss medications. "We see the explosive growth across lots of demographics and occasions." Danone said it spent about one year developing the shake, which is priced at $3.69. People taking weight-loss drugs are encouraged to eat more protein to avoid losing muscle, Reuters has reported, leading to food makers such as Nestle and Conagra offering new products high in the nutrients or re-labeling existing ones to meet the new demand. Makers of smoothies and shakes have also joined the trend. Ultra-filtered milk brand Fairlife, which offers protein shakes, isn't specifically marketed to people on GLP-1s, but is growing substantially, Coca-Cola executives have said in recent calls with Wall Street analysts, helping buoy the entire company. Energy-drink maker Celsius in February acquired Alani Nu, another maker of a popular protein shake. France-based Danone says the Oikos shake is good for digestive health because it has five grams of a certain type of fiber. The company, with the new product, is responding to a trend of U.S. consumers paying more attention to what they eat. "We see a larger movement toward nutrition and health as part of the agenda for the American consumer," Grant said. "We see that American consumer expectation (of) health through food as growing." Grant said he also sees U.S. Health Secretary Robert F. Kennedy Jr.'s Make American Healthy Again campaign, which is seeking to overhaul U.S. packaged food and ingredients in it, as part of that consumer movement. Danone is turning to social media influencers to help sell the product, the company said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Exclusive-Ketchup maker Kraft Heinz investing $3 billion upgrading US manufacturing
By Jessica DiNapoli NEW YORK (Reuters) -Kraft Heinz is spending $3 billion to upgrade its U.S. factories, its largest investment in its plants in a decade, even as executives say consumer sentiment is at its second-lowest point in 70 years, and it has cut sales and profit forecasts. The upgrades will help lower costs by making the plants more efficient, which in turn may help offset President Donald Trump's tariffs, which factored into the company's decision to make the investment, said Pedro Navio, Kraft Heinz's president of North America, in an interview with Reuters. The investment also allows the packaged food maker to come up with and sell new products faster, he said. Kraft Heinz manufactures its market-leading Heinz ketchup, Kraft macaroni and cheese and Philadelphia cream cheese, among other products, at 30 plants across the United States. Kraft Heinz told Wall Street analysts last month that tariffs were adding to its costs and that consumers were buying less due to economic uncertainty. But the company is moving forward and making the new investment now to defend its market share, Navio said. "It goes beyond just efficiencies or dealing with the current tariff challenges," he said, saying the investment allows Kraft Heinz to produce food for the long term. The company is currently facing tariffs on imports such as coffee, after the United States last month implemented a 10% levy on all imported goods. Its imports from China, which faces higher tariffs, are negligible, a spokesperson said. Kraft Heinz, which also roasts and sells Maxwell House coffee, asked suppliers for a 60-day notice before putting through price hikes. Nearly all of what Kraft Heinz sells in the United States is made domestically, Navio said, adding that the company grows its own tomatoes in California and potatoes in Idaho, for example. It exports some of what it manufactures in the United States to Canada, Navio said. The company expects the investment will create about 3,500 new construction jobs where the plants are located. Navio said the company doesn't anticipate the need for additional employees beyond that. Facial tissue manufacturer Kimberly-Clark and brewer Anheuser-Busch InBev have made similar announcements in recent weeks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Graco stroller maker Newell seeks tariff details before resuming China shipments
By Jessica DiNapoli NEW YORK (Reuters) -Newell Brands is looking for more clarity on how newly lowered U.S. tariffs will be applied before potentially resuming shipments of its Graco baby strollers and child car seats from China, a spokesperson said on Monday. Atlanta-based manufacturer Newell, whose products range from coffee makers to pens, paused purchase orders on its China-made goods, which are primarily Graco baby products, in the short term to avoid 145% levies on shipments, CEO Chris Peterson told Reuters last month. The company brought in sufficient inventory to ship to its customers such as Walmart and Target through mid-summer, Peterson said. The Trump administration said last week it was looking at exempting strollers, cribs, car seats and other essential items for babies from tariffs. The Newell spokesperson said the company is actively lobbying for relief from the tariffs through trade groups and on its own. Newell specifically wants clarity on how tariffs will be applied to shipments en route to the United States from China if negotiations fail, the spokesperson said. Newell has already hiked prices on the baby goods by approximately 20% because of the tariffs, straining the budgets of new and expectant parents.
Yahoo
12-05-2025
- Business
- Yahoo
Graco stroller maker Newell seeks tariff details before resuming China shipments
By Jessica DiNapoli NEW YORK (Reuters) -Newell Brands is looking for more clarity on how newly lowered U.S. tariffs will be applied before potentially resuming shipments of its Graco baby strollers and child car seats from China, a spokesperson said on Monday. Atlanta-based manufacturer Newell, whose products range from coffee makers to pens, paused purchase orders on its China-made goods, which are primarily Graco baby products, in the short term to avoid 145% levies on shipments, CEO Chris Peterson told Reuters last month. The company brought in sufficient inventory to ship to its customers such as Walmart and Target through mid-summer, Peterson said. The Trump administration said last week it was looking at exempting strollers, cribs, car seats and other essential items for babies from tariffs. The Newell spokesperson said the company is actively lobbying for relief from the tariffs through trade groups and on its own. Newell specifically wants clarity on how tariffs will be applied to shipments en route to the United States from China if negotiations fail, the spokesperson said. Newell has already hiked prices on the baby goods by approximately 20% because of the tariffs, straining the budgets of new and expectant parents. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
