Procter & Gamble to cut 7,000 jobs amid restructuring and trade uncertainty

Procter & Gamble revealed plans to reduce its global workforce by approximately 7,000 employees – about 6% – over the next two years as part of a broader restructuring effort. This move includes withdrawing from certain product categories in select markets to streamline operations and improve cost efficiency.

The announcement came during the Deutsche Bank Consumer Conference in Paris, where P&G executives described the initiative as an acceleration of their existing strategic approach to remain competitive in a challenging market environment. The company also hinted at potential brand divestitures but did not provide specific details.

This restructuring unfolds amid expectations of slower consumer demand in 2025, influenced by ongoing uncertainties tied to U.S. tariffs, particularly on imports from China. These tariffs, introduced during the Trump administration, have disrupted supply chains and raised costs for many consumer goods companies, including P&G.

While roughly 90% of P&G’s U.S. sales are produced domestically, the company relies on imported raw materials, packaging, and some finished goods, making it vulnerable to tariff-related expenses. P&G projects a tariff-related pre-tax cost increase of about $600 million in fiscal year 2026.

To counteract these pressures, the company has implemented price hikes and cost reduction measures. Executives acknowledged the unpredictable geopolitical climate and the resulting consumer uncertainty, which continue to challenge business planning.

At the end of June 2024, P&G employed around 108,000 people, and the planned job cuts represent roughly 15% of its non-manufacturing workforce. The restructuring is expected to generate charges between $1 billion and $1.6 billion before tax over two years, with about a quarter of those costs being non-cash expenses.

The company aims to simplify its organizational structure by broadening roles and reducing team sizes, while supply chain adjustments – including brand sales – should contribute to lowering operational costs and maintaining competitiveness in a more restrained growth environment.