Quick Hit:

Procter & Gamble (P&G) announced Thursday it will eliminate up to 7,000 jobs, approximately 15% of its non-manufacturing workforce, over the next two years. The cuts are part of a larger restructuring plan aimed at streamlining operations, adjusting its product portfolio, and enhancing supply chain efficiency. The company is responding to what it calls a “challenging environment” marked by economic uncertainty and global competition.

Key Details:

• P&G will cut up to 7,000 non-manufacturing jobs through 2026.

• The company is restructuring to simplify teams, leverage automation, and reduce costs.

• Portfolio changes could include exiting categories and divesting brands.

Diving Deeper:

The Cincinnati-based consumer goods company said the job cuts will be carried out over a two-year period and affect roughly 15% of its non-manufacturing workforce. The company emphasized that employee separations will be handled “with support and respect,” consistent with P&G’s values and local laws.

Executives shared the news at the Deutsche Bank Consumer Conference in Paris, describing the restructuring as a strategic move to adapt to today’s economic conditions. "This is not a new approach, rather an intentional acceleration of the current strategy," P&G said. The plan is designed to make roles broader, teams smaller, and work more efficient and fulfilling, aided by increased use of digital tools and automation.

In addition to workforce reductions, P&G is reviewing its portfolio with the potential for exiting certain markets, categories, or brands. These shifts are intended to enhance innovation speed, improve cost-efficiency, and create supply chain advantages.

The company warned of muted consumer demand heading into 2025, citing ongoing global uncertainty, geopolitical instability, and intensifying competition. P&G, which makes brands such as Tide, Pampers, and Gillette, had approximately 108,000 employees as of June 2024.

P&G expects to incur pre-tax charges between $1 billion and $1.6 billion during the restructuring process, with about a quarter of that being non-cash.

The company said it remains focused on disciplined resource allocation and pursuing growth opportunities, even as it navigates near-term challenges in the market.