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Procter & Gamble says it will cut 7,000 jobs over the next two years as part of its efforts to cut its portfolio and reduce costs as consumer sentiment and tariff uncertainty places emphasis on growth.
The manufacturers of home brands, including Gillette and Tide, revealed a 15% cut in non-manufactured roles at a Paris-based conference on Thursday, and planned to rebuild the organization by selling many categories and brands.
The company did not specify where the job openings were.
US consumer goods groups have fought slower demand and careful attention from shoppers in the wake of Donald Trump’s tariffs. In April, the group reduced annual sales and profit guidance as a result of “consumers reducing consumption.”
P&G expects organic sales growth to decline by 2% in 2025, from a 3-5% forecast range.
Chief Financial Officer Andre Schulten said Thursday that the company will begin a restructuring program later this year.
In a summary of the presentation posted online, P&G said that the reorganization will help increase productivity in the long term and make the supply chain right-sized to “enhance efficiency, speed up innovation” and “reduce costs.”
The company said this is not a reactive cost-cutting measure to address recent market volatility, but rather a way to improve its business. P&G estimates that the plan will cost between $1 billion and $1.6 billion before tax.
However, Schulten added that “tensions” in the Middle East, Ukraine and Russia are squeezing consumers along with tariffs, and expects a tariff hit of between $0.03 and $0.04 per share in the next quarter.
The company said it would consider raising prices in its first quarter revenue to offset the impact of tariffs. Net sales for the first three months of the year fell 2% to $19.8 billion, which is greater than expected.
