P&G's Brutal Cut 7,000 Jobs Gone! Is Trump's Trade War to Blame?

Procter & Gamble Announces 7,000 Job Cuts Amid Economic Uncertainty

Procter & Gamble (P&G), the multinational consumer goods giant, has announced a significant restructuring plan that will result in the elimination of approximately 7,000 jobs globally over the next two years. This move, representing roughly 6 percent of its total workforce, comes as the company navigates an increasingly complex and uncertain economic landscape.

The announcement was made at a conference in Paris, where P&G executives outlined the company's strategy to streamline operations and enhance efficiency. The plan involves a combination of workforce reduction and brand shedding, aiming to create a leaner and more agile organization.

Key highlights of P&G's restructuring plan:

• Job Cuts: Elimination of 7,000 positions worldwide over the next two years.
• Workforce Impact: Represents 6% of P&G's global workforce.
• Focus: Aims to reduce 15% of the company’s non-manufacturing workforce.
• Brand Shedding: Plans to streamline its portfolio by eliminating certain brands.

While executives remained tight-lipped about the specific brands slated for elimination and the geographical distribution of the job cuts, the overarching goal is clear: to optimize P&G's operational structure in response to evolving market dynamics.

According to Andre Schulten, the company’s chief financial officer, P&G sees "more opportunities to make roles broader and teams smaller." This statement suggests a move towards empowering employees with broader responsibilities and fostering more collaborative and efficient team structures.

As of June 2024, Procter & Gamble employed approximately 108,000 people worldwide. The announced job cuts represent a substantial shift, highlighting the pressure on large corporations to adapt to changing economic realities, including the uncertainties created by global trade dynamics.

Factors influencing the decision:

• Global Economic Uncertainty: The company cited uncertainty, including that caused by global trade tensions, as a key driver for the reorganization.
• Efficiency Improvements: P&G aims to streamline operations and reduce costs.
• Competitive Landscape: The consumer goods industry is fiercely competitive, requiring companies to constantly innovate and optimize.

P&G's decision reflects a broader trend among multinational corporations to proactively manage costs and adapt to an ever-changing global marketplace. While the news of job cuts is undoubtedly challenging for affected employees, the company's strategic realignment aims to position it for long-term success and sustainable growth in a competitive environment. This strategic pivot underscores the constant need for businesses to evolve and adapt in order to thrive in the face of economic headwinds.

Tags: Procter & Gamble, P&G, job cuts, layoffs, Trump trade war, global economy, business news, consumer goods, Andre Schulten, company reorganization

Source: https://www.nytimes.com/2025/06/05/business/procter-gamble-cut-jobs.html