Procter & Gamble is cutting 7,000 jobs, about 6% of its global workforce, over the next two years as it embarks on a major restructuring plan aimed at weathering economic uncertainty and rising costs.
The cuts, announced Thursday at the Deutsche Bank consumer conference in Paris, will impact roughly 15% of the company’s non-manufacturing roles, CFO Andre Schulten said. The move comes amid growing pressure from tariff-related expenses and a slowdown in consumer spending, particularly in the U.S., where inflation continues to weigh on household budgets.
“This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm. It does not, however, remove the near-term challenges that we currently face,” Schulten said.
Alongside the job cuts, P&G plans to exit select product categories and brands in some markets. More details on the brand and market exits are expected in July.
The Cincinnati-based company, which had about 108,000 employees globally as of June 2024, has already begun raising prices in response to cost pressures and may continue to do so. In April, it said it was ready to “pull every lever” to preserve margins, including cost-cutting and pricing strategies.
P&G manufactures about 90% of its products domestically but continues to rely on imported materials and some finished goods, particularly from China.
The coming months may bring further changes to product availability, pricing models, and partner relationships as P&G changes its global footprint.