Procter & Gamble Co (P&G) announced plans to cut 7,000 jobs, or about 6% of its global workforce, over the next two years as part of a sweeping restructuring effort aimed at navigating uneven consumer demand and rising costs linked to tariff uncertainty.
The maker of Pampers and Tide said the move, revealed at the Deutsche Bank Consumer Conference in Paris, will focus on streamlining operations, simplifying its organisational structure and potentially divesting non-core brands and product categories in certain markets.
The job cuts will affect about 15% of P&G’s non-manufacturing workforce, the company said.
“This is not a new approach, rather an intentional acceleration of the current strategy to win in an increasingly challenging environment,” executives noted, pointing to unpredictable geopolitical dynamics and shifting consumer spending patterns.
P&G, which had around 108,000 employees as of June 30, 2024, is among several global consumer goods giants, including Unilever, bracing for softer demand and inflation-driven price pressures throughout 2025.
The company has already raised prices to offset tariff impacts and plans further supply chain adjustments and organizational simplification by making roles broader and teams leaner.
Chief Financial Officer Andre Schulten and operations head Shailesh Jejurikar underscored the need for agility amid volatile market conditions, as US-China trade tensions continue to drive up input costs.
The US, P&G’s largest market, has been particularly affected by import tariffs on ingredients and packaging sourced from China.
P&G said the restructuring will help it remain competitive, enhance efficiency and better align with the realities of a slow-growth, high-cost global landscape.
