P&G to cut 7,000 jobs, exit brands as uncertainty grows

Procter & Gamble (P&G) plans to reduce its workforce by 7,000 jobs over the next two years.

This reduction represents about 6% of its total staff and is part of a broader restructuring initiative to address economic challenges.

The company will exit selected product categories and brands in certain markets to navigate economic and geopolitical headwinds.

Executives cited global instability and rising consumer uncertainty, adding that tariffs could cost the company US$600 million before tax by 2026.

The restructuring includes streamlining operations, reducing team sizes, and incurring up to US$1.6 billion in charges, with a quarter being non-cash.

P&G has previously exited markets and divested brands like Argentina and Nigeria, while most of its US sales still come from domestic production.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ P&G’s pattern of major restructuring follows predictable business cycles

The current job cuts represent the fourth major restructuring at P&G in 25 years, revealing a cyclical pattern in how consumer goods giants respond to market pressures.

In 1999, P&G cut 15,000 jobs globally as part of “Organization 2005,” affecting about 13% of its workforce at that time1.

The company underwent another significant transformation in 2013 when it brought back former CEO A.G. Lafley to address declining sales and market share issues amid changing consumer preferences2.

This was followed by a 2018 reorganization that created six business units structured around product categories rather than geographical regions to improve market responsiveness3.

Each restructuring coincided with specific economic challenges, from market saturation in the late 1990s to the current pressures from tariffs and uncertain consumer spending, demonstrating how even market leaders must periodically reinvent themselves to maintain competitiveness.

The repetitive nature of these restructuring efforts suggests that large consumer goods companies face fundamental industry challenges that require periodic organizational renewal rather than one-time solutions.