Procter & Gamble to cut 7,000 jobs amid tariff uncertainty and muted demand

Procter & Gamble (NYSE:PG), the global consumer goods giant behind brands like Tide and Pampers, announced on Thursday its plan to eliminate approximately 7,000 jobs, or about 6% of its total workforce, over the next two years.

The move comes as the company grapples with uneven consumer demand and escalating costs driven by ongoing trade disputes.

The job cuts represent roughly 15% of P&G's non-manufacturing workforce.

As of June 30, 2024, the company employed around 108,000 individuals worldwide.

In addition to workforce reductions, P&G executives, speaking at a Deutsche Bank conference in Paris, revealed intentions to exit certain product categories, brands, and product forms in individual markets, potentially including some brand divestitures.

These strategic adjustments are part of a broader two-year plan aimed at navigating a challenging global economic landscape.

P&G, like many other consumer goods companies, is facing the prospect of higher operational costs due to the ongoing trade war, which has led to widespread tariff uncertainty.

This is compounded by a general slowdown in consumer spending.

In April, the company had already indicated it would raise prices on some products and was prepared to utilize all available measures to mitigate the impact of tariffs.

The company anticipates that the restructuring will simplify its organizational structure by "making roles broader, teams smaller."

Furthermore, the planned changes to its product portfolio are expected to facilitate adjustments to the supply chain, ultimately leading to reduced costs.