Procter & Gamble (P&G) has announced plans to eliminate about 7,000 jobs over the next two years, representing roughly 15% of its non-manufacturing workforce.
The move is part of a broader strategy to streamline operations, reduce costs, and prepare for ongoing challenges in the global market.
The job cuts were confirmed on Thursday during an investment conference in Paris and in a June 5 blog post on the company's official website.
P&G, the maker of household staples such as Tide detergent, Pampers diapers, and Bounty paper towels, said the changes are intended to make the company more agile and efficient.
"We expect to reduce up to 7,000 non-manufacturing roles," said Chief Financial Officer Andre Schulten, adding that more information will be provided during the company's next earnings call in July, CBS News said.
"Roles will be broader, teams smaller, and the work more fulfilling and efficient," the company wrote.
P&G did not say which specific departments or regions would be affected by the cuts. The company promised that all layoffs would be handled with "support and respect," in accordance with local laws and company values.
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 US tariffs that have roiled numerous consumer companies https://t.co/xwzY6xuDgL pic.twitter.com/iv2CopZaXe
— Reuters (@Reuters) June 5, 2025
P&G to Review Brand Portfolio Amid Sales Decline
Along with reducing its workforce, P&G is also planning to review its portfolio and may sell off some of its brands.
No brand names were mentioned, but executives stated that changes would begin in July, at the start of the new fiscal year.
The announcement comes as P&G, like many companies, faces headwinds due to slowing consumer spending, inflation, and rising geopolitical tensions. In its most recent earnings report, the company reported $19.8 billion in net sales for Q3, a 2% decrease from the same period last year.
According to USA Today, despite the drop, P&G still reported six straight years of 4% or higher organic sales growth and maintains a long-term positive outlook.
However, the company acknowledges that the landscape is changing rapidly. Consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable," the company stated in its blog.
Industry analysts say this isn't unique to P&G. "Companies are spending less, slowing hiring, and sending layoff notices," said Andrew Challenger of Challenger, Gray & Christmas. In May, job cuts across the US rose by 47% compared to the same month in 2024.
P&G says more details will be shared during its next earnings call, scheduled for July 29.
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