Procter & Gamble (P&G), the global consumer goods leader, has revealed plans to cut around 7,000 jobs within its non-manufacturing workforce over the next two years, amounting to roughly 15% of that segment.
The announcement was made by P&G’s chief financial officer, Andre Schulten, during the Deutsche Bank Consumer Conference. The company currently employs about 108,000 people worldwide. The decision reflects the pressures P&G faces in its largest market, the United States, where organic sales growth was limited to just 1% in the fiscal third quarter.
Trade tariffs introduced during the previous U.S. administration have added to the company’s cost burdens. To counteract these increased expenses, P&G plans to implement price rises in the new fiscal year starting in July. Schulten noted that tariffs are expected to reduce earnings per share by between 3 and 4 cents in the current fiscal quarter and forecasted a $600 million pre-tax impact from tariffs in fiscal 2026.
In addition to workforce cuts, P&G is undertaking a comprehensive review of its brand portfolio and supply chain operations. The company intends to streamline its corporate structure by consolidating roles and creating smaller, more agile teams. This restructuring is expected to generate non-recurring costs ranging from $1 billion to $1.6 billion before taxes.
“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,” Schulten stated.
This move places P&G alongside other major U.S. corporations, such as Microsoft and Starbucks, which have recently announced layoffs in response to economic pressures and tariff-related challenges. Investors are closely monitoring forthcoming U.S. employment data for indications of a slowing labour market, with recent reports showing mixed trends in private sector hiring.
Following the announcement, P&G’s shares dropped by more than 1% in early trading, underperforming the S&P 500 index, which has gained over 1% this year. The company’s market capitalisation currently stands at approximately $407 billion.