ISLAMABAD: Procter & Gamble (P&G), the global consumer goods giant, revealed plans to cut 7,000 jobs over the next two years as part of a broader restructuring strategy to address an uncertain economic environment.
The company, known for brands like Tide and Pampers, is responding to challenges including U.S. tariffs that have disrupted many consumer businesses worldwide.
Strategic Restructuring in a Challenging Market
The announced layoffs represent approximately 6% of P&G’s workforce and are aimed at streamlining operations by simplifying organizational structure, making teams smaller, and broadening roles.
Executives at a Deutsche Bank Consumer Conference in Paris explained that the move is an acceleration of existing strategies to adapt to increasing market pressures.
With geopolitical tensions and unpredictable trade policies creating volatility, P&G is adjusting its business model to maintain competitiveness.
The company also plans to exit certain product categories and markets, focusing on areas with stronger growth potential.
CFO Andre Schulten acknowledged that tariffs and trade tensions could lead to a $600 million before-tax hit in the 2026 fiscal year, compelling P&G to explore all options, including raising prices and cutting costs.
Impact of Trade Policies on Consumer Goods
The ongoing trade war, particularly tariffs imposed by the U.S., has affected global supply chains and increased costs for many manufacturers.
P&G imports raw materials and some finished goods from China, making it vulnerable to these changes.
The company’s two-year restructuring window allows flexibility to adjust the depth and timing of cuts as the trade landscape evolves.
Market analysts suggest that while these changes may bring short-term challenges, P&G’s focus on efficiency and core products positions it to weather the current uncertainties.
The company expects to record charges between $1 billion and $1.6 billion before tax during this period.
Despite the job cuts, P&G remains committed to innovation and meeting consumer needs amid a shifting global economy.
