Procter & Gamble (NYSE: PG) will eliminate up to 7,000 office jobs—about 15% of its non-manufacturing headcount—over the next two years, the company disclosed at Deutsche Bank’s Global Consumer Conference.
The restructuring, aimed at “improving productivity,” will cost an estimated $1 billion to $1.6 billion but the management did not specify which hubs will be hit.
The sweeping cutback lands as consumer-goods makers wrestle with sagging sentiment and surging tariff costs. In April, P&G trimmed its full-year outlook and warned of an extra $1 billion–$1.5 billion in tariff-related expenses.
CEO Jon Moeller called tariffs “inherently inflationary” and said the company will “likely roll out price increases” when its new fiscal year begins in July, but only after “shifting sourcing or changing formulations” to blunt the impact.
Beyond payroll, the conglomerate signaled it is reviewing underperforming brands and hinted at divestitures “in the months ahead.”
Management is also targeting deeper supply chain efficiencies, a familiar playbook as peers try to defend margins while retail price tags climb. For instance, Remy Cointreau this week scrapped long-term sales guidance, citing slow US recovery and policy headwinds in America and China.
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