Procter & Gamble (PG), the world’s largest consumer goods company, is cutting 7,000 jobs over the next two years as it grapples with an uncertain spending environment. The move comes amid rising tensions between the US and its trading partners, including China.
The job cuts represent about 6% of P&G’s workforce, which will also lead to around a $600 million before-tax hit in fiscal year 2026. The company expects to record charges of $1 billion to $1.6 billion over the two-year period, with a quarter of the charges expected to be non-cash.
P&G plans to exit some product categories and brands in certain markets and may consider divestitures as part of its restructuring efforts. The company has a long history of adapting to changing market conditions, but this move marks an acceleration of its strategy.
The impact of tariffs on global trade has been significant, with companies losing at least $34 billion in lost sales and higher costs, according to Reuters analysis. P&G has taken steps to mitigate the effects, including raising prices on some products and cutting costs.
The restructuring will simplify the company’s organizational structure by making roles broader and teams smaller, which will free up cash to focus on its core brands such as Tide, Pampers, and Old Spice. The move is seen as a strategic move to improve competitiveness in an increasingly challenging environment.
P&G has previously exited markets and divested local brands, but this latest move marks a significant step towards streamlining its operations.
Source: https://www.reuters.com/business/procter-gamble-cut-7000-jobs-over-two-years-2025-06-05