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Fast Company
20 hours ago
- Business
- Fast Company
Procter & Gamble mass layoffs loom as consumer goods giant plans 7,000 job cuts. Here's what to know
U.S. consumer goods giant Procter & Gamble has announced that it will lay off 7,000 workers over the company's next two fiscal years. The staff reductions come at a time when the geopolitical environment is 'unpredictable,' the company said, while consumers are facing 'greater uncertainty.' Here's what you need to know about P&G's job cuts. 7,000 P&G jobs to be lost On June 5, as two of Procter & Gamble's executives—Chief Operating Officer Shailesh Jejurikar and Chief Financial Officer Andre Schulten—were speaking at the Deutsche Bank dbAccess Global Consumer Conference in Paris, the company announced a new growth strategy. That growth strategy consists of three elements: a revamping of its portfolio of goods, its supply chains, and its organizational design. Unfortunately for a great number of Procter & Gamble's employees, the 'organizational design' part of its revamp is just another term for layoffs. P&G executives said that as part of that organizational design revamp, the company would be cutting 7,000 jobs over its next two fiscal years. Procter & Gamble is currently in its fourth quarter of fiscal year 2025, which means the layoffs should be complete by the end of its fourth quarter of fiscal year 2027. reported that as of June 2024, Procter & Gamble had 108,000 employees worldwide, which means the reduction would equate to about 6% of its workforce. In a press release, Procter & Gamble said the job cuts would come from non-manufacturing roles, and that they would equate to about a 15% reduction in the company's non-manufacturing workforce. P&G says the job cuts are being done to enable 'an even more agile, empowered, and accountable organization design' and that they will make 'roles broader, teams smaller, work more fulfilling and more efficient.' Portfolio and supply chain changes coming, too In addition to the job cuts, Procter & Gamble said it would be making 'interventions' regarding its supply chain. These interventions include both 'right-sizing and right-locating production.' The company also said it will be reviewing its portfolio choices and will divest of some of its brands entirely, while exiting 'some categories, brands, and product forms in individual markets.' P&G did not announce which brands will be divested of, but the company currently owns many of the biggest household name consumer goods brands in the world, including Always, Bounty, Charmin, Dawn, Downy, Febreze, Gillette, Head & Shoulders, Olay, Oral-B, Pampers, Pantene, Tide, and Vicks. What is driving the job and brand cuts? What's interesting about Procter & Gamble's announcements are some of the word choices they used. While the company did not directly reference President Donald Trump's ongoing tariff war as the reason for its three-pronged revamp, it's hard not to feel that the current tariff uncertainty wasn't at the front of P&G executives' minds when making these decisions. In the press release announcing the changes, the company acknowledged that 'consumers face greater uncertainty' in the future and that the 'geopolitical environment' was 'unpredictable.' A particularly telling piece of language is when P&G spoke of its upcoming supply chain changes, noting that it was 'right-locating production' of some of its supply chain components. Like many U.S. companies, P&G manufactures many of its products overseas in countries that are being hit hard by Trump's tariffs. Those tariffs will raise the total cost of making those goods, leading to reduced margins. If a country can shift its production from a high-tariffed country to a lower-tariffed one, that move can help mitigate some of the increased tariff-related costs. Companies also fear that a tariff-fueled recession is increasingly likely in America, if not the entire world. If that happens, consumers will cut back on spending, which will lead to lower sales. One of the fastest ways that a company can compensate for lower sales is by reducing its workforce. However, as The Wall Street Journal notes, Procter & Gamble has stated that the layoffs aren't being made for cost-cutting measures and instead are being done to create a better workplace structure. How did PG stock react to the news? Following the announcement at the Paris conference today, Procter & Gamble's stock, which trades under the ticker 'PG' on the New York Stock Exchange (NYSE), has remained relatively flat in premarket trading. Procter & Gamble reported its most recent financial results for Q3 2025 in April. The company reported net sales of $19.8 billion for the third quarter, representing a 2% decrease compared to the same period a year earlier. Its gross profit was also down 3% for the quarter versus the same quarter a year earlier. PG shares have fluctuated widely since the beginning of the year. They nearly reached $180 per share in early March, while falling as low as below $157 in April.
Irish Times
a day ago
- Business
- Irish Times
Procter & Gamble to slash 7,000 jobs in cost-cutting drive
Procter & Gamble has said it will slash 7,000 jobs over the next two years as part of an effort to slim down its portfolio and cut costs, as weak consumer sentiment and tariff uncertainty weigh on growth. The maker of household brands including Gillette and Tide revealed the cuts of 15 per cent of its non-manufacturing roles at a Paris-based conference on Thursday, as well as plans to divest a number of categories and brands and restructure the organisation. The company did not specify where the job cuts would be made. The US consumer goods group has been battling sluggish demand and heightened caution from shoppers in the wake of Donald Trump's tariffs. In April the group lowered its sales and profit guidance for the year, as a result of a 'more nervous consumer reducing consumption'. READ MORE P&G expects organic sales growth of 2 per cent in 2025, down from a forecast range of 3 to 5 per cent. Chief financial officer Andre Schulten said on Thursday that the company would launch the restructuring programme in the second half of the year, which would include cutting down management teams and using more automation and 'digitisation'. In a summary of its presentation posted online, P&G said the restructuring would boost its productivity over the long term and help right-size its supply chain to 'drive efficiencies, faster innovation' and 'cost reduction'. The company said this was not a reactive cost-cutting measure in response to recent market volatility, but rather a means of improving its operations. P&G estimates that the plan will cost between $1bn and $1.6bn before tax. However, Schulten acknowledged that 'tensions' in the Middle East, Ukraine and Russia, together with tariffs, were weighing on consumers, adding he expected a tariff hit of $0.03 to $0.04 per share in the next quarter. The company said during its first-quarter earnings that it would consider raising prices to offset the impact of tariffs. Net sales in the first three months of the year fell 2 per cent to $19.8bn, a bigger than forecast drop. Copyright The Financial Times Limited 2025
National Post
27-05-2025
- Business
- National Post
Philip Morris International to Host Webcast of Presentation at the 2025 dbAccess Global Consumer Conference
Article content Philip Morris International Inc. (PMI) (NYSE: PM) will host a live webcast of the company's remarks and Q&A session with Emmanuel Babeau, Chief Financial Officer, at the 2025 dbAccess Global Consumer Conference on Tuesday, June 3, 2025, at approximately 11:15 a.m. CET (5:15 a.m. ET). The Webcast and presentation slides will be available at with a post-event recording of the webcast available for one year at the same site. Article content The webcast will provide a live stream of the entire PMI session and can also be accessed on mobile devices by downloading PMI's free Investor Relations Mobile App at Article content Philip Morris International: A Global Smoke-Free Champion Article content Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company's current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. As of December 31, 2024, PMI's smoke-free products were available for sale in 95 markets, and PMI estimates they were used by 38.6 million adults around the world. The smoke-free business accounted for 42% of PMI's first-quarter 2025 total net revenues. Since 2008, PMI has invested over $14 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match's General snus and ZYN nicotine pouches and versions of PMI's IQOS devices and consumables – the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to 'PMI', 'we', 'our' and 'us' mean Philip Morris International Inc., and its subsidiaries. For more information, please visit and Article content Article content Article content Article content Contacts Article content Article content Article content
Yahoo
10-05-2025
- Business
- Yahoo
Experts detail what is best to stockpile with tariffs in place: ‘Let's not go full 2020 toilet paper crisis mode'
As uncertainty and recession fears continue to surround Donald Trump's on-again, off-again tariffs on U.S. trading partners, some financial experts are urging consumers to stock up on key goods that could become more expensive in the coming days — though they warn against the kind of fevered stockpiling that took place during the days of the Covid pandemic. 'I'd focus on big-ticket items. If you're planning to buy a car and prefer an imported one, expect an immediate price impact. Compare your options and check which models have been affected so you can make an informed decision,' Ryan Haiss, a certified financial planner at Flynn Zito Capital Management, told MarketWatch. The Trump administration has offered a 90-day pause on its reciprocal tariffs against many countries, though levies on China and a 25 percent import tax on foreign cars remain. In the next six months to a year, vehicles in the U.S. could cost between $2,000 and $4,000 more due to the tariffs, Goldman Sachs estimates. 'Let's not go full 2020 toilet paper crisis mode,' Haiss added. 'No need to turn your garage into a Costco aisle, just be smart about buying what you actually use.' Others pointed to electronics as a key area of concern, given that the administration said Sunday a recently authored exemption for digital products in the tariff regime could soon come to an end. 'TVs, handheld electronics, your Beats headphones — all are about to be very expensive,' financial planner Scooter Thomas told Good Housekeeping. Trump has also said new tariffs could be put on pharmaceutical goods sometime soon. While U.S. companies may be able to blunt some price impacts by negotiating new terms with their suppliers, or by selling inventory they got into the country before the tariffs took effect, experts expect consumers to feel the pain in the coming months. 'I think we'll really see it by the middle of the summer when people go to do back-to-school shopping,' Mary Lovely, a senior fellow at the Peterson Institute for International Economics, told The Washington Post this week. Some buyers have already begun buying up household goods in anticipation of the tariffs, which are paid by U.S. companies, typically causing firms to raise prices on consumers to compensate. "I'm buying double of whatever - beans, canned goods, flour, you name it," Thomas Jennings of New Jersey told Reuters, as he stockpiled ingredients in a Walmart Supercenter in Secaucus. "There's a recession coming and I am preparing for the worst.' There might be some benefit to buying up items that won't expire or require refrigeration — but don't panic. 'Stocking up on essentials you know you will use like toilet paper or household cleaning products might make sense for some families, especially if you're able to buy in bulk at today's prices,' Henry Silva, a wealth management adviser at Apollon Wealth Management, told MarketWatch. 'But overextending yourself and your budget or beginning to hoard items based on the fear of future cost doesn't make sense.' The tariffs are expected to function like a nearly $1,300 tax increase per U.S. household, according to the Tax Foundation. Financial leaders have warned that Trump's tariffs not only could cause a recession in the U.S., but a full-blown reordering of the global economy. 'We are having profound changes in our domestic order [...] and we're having profound changes in the world order. Such times are very much like the 1930s,' hedge fund billionaire Ray Dalio told NBC's Meet the Press on Sunday. 'So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors - those changes in the orders, the systems, are very, very disruptive,' he continued. 'How that's handled could produce something that is much worse than a recession. Or it could be handled well.' 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
Entrepreneur
09-05-2025
- Business
- Entrepreneur
Rural Growth, Small Packs & Resilience, Keep FMCG Firms Afloat
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. For the fifth consecutive quarter, rural growth outpaced urban areas, according to market research firm NielsenIQ. However, the rural demand in consumer goods fell in the March quarter compared with the October December quarter in 2024. Demand for fast-moving consumer goods (FMCG) in rural India stood at 8.4 per cent in the March quarter, compared to 9.2 per cent in October-December of 2024. Urban growth was at 2.6 per cent, compared to 4.2 per cent in the October-December quarter. Although rural demand for consumer goods slowed down, it was still four times faster than in urban areas. "FMCG market witnessed subdued demand trends in the financial year 24-25. Rural demand continued to improve gradually while urban demand moderated over the year," said Rohit Jawa, CEO, HUL. In the Q4 results, Varun Berry, vice chairman & MD, Britannia, said, "Our distribution footprint now directly caters to about 29 lakh outlets across the country, with the rural distributors aiding towards strengthening our presence in the rural markets." Marico too in its Q4 results shared a similar sentiment, "Government schemes, rise in MSPs and healthy monsoon forecasts to aid ongoing rural recovery," said the company. With rural and non-food categories leading the charge in consumption growth, and both traditional and modern trade channels playing crucial roles, the market is on an exciting upward trajectory. With a favourable monsoon forecast and revised tax slabs, consumption is likely to improve in the upcoming quarters. "We expect consumer demand in India to recover progressively in the coming quarters, both in urban and rural markets. Our business fundamentals remain strong with household penetration gains across Oral Care, Hair Care, Healthcare, Air Fresheners and Food & Beverages businesses. We are focusing on strengthening our competitive edge in the marketplace by investing in scaling up our rural footprint and rolling out consumer-centric innovations," said Mohit Malhotra, CEO, Dabur India Limited. In order to boost urban consumption, Dabur India is refining the go-to-market strategy to respond to the changing channel dynamics in urban India. More than large firms, smaller manufacturers have seen higher volume growth rates in non-food categories over the last two quarters. This might be because smaller players face challenges in keeping prices stable in the food sector, while non-food categories with significant price increases have experienced higher volume growth. "Volume growth is slowing across categories, non-food segments are still outpacing food. Inflation is easing overall, but high edible oil prices are keeping staples expensive," said Roosevelt Dsouza, head of customer Success – FMCG, NielsenIQ India. As rural markets continue to drive growth, urban metros see a shift toward e-commerce. "We are at about 7-8 percent of e-commerce contributing to overall business. This is faster than the average of our total business. It would that go to 15 percent in the next few years, it's likely. Q-commerce, too would play a role," Jawa explained. Furthermore, the report highlighted that the rural growth is fuelled by 5.1 per cent rise in volume and a 5.6 per cent increase in prices. Interestingly, the number of unit sales was higher than overall volume. This also showcases a preference shift towards smaller packs. "Small packs are also growing faster because rural areas are now growing faster than the urban market. So, some of those effects are there. But for us, the mix has been better than it was last quarter," Jawa added. Amidst a tight consumption scenario, companies underscored that resilience in a challenging operating environment marked by rising commodity prices, changing channel dynamics, and subdued demand across FMCG categories helped navigate the challenging period.
