Procter & Gamble plans to cut up to 7,000 jobs over the next two years as part of a restructuring effort amid rising costs from tariffs and growing economic concerns among consumers.
The job reductions, announced at the Deutsche Bank Consumer Conference in Paris, represent about 6% of the company’s global workforce and roughly 15% of its nonmanufacturing staff, according to CFO Andre Schulten.
Schulten described the restructuring as a crucial step to secure long-term growth over the next two to three years but acknowledged that near-term challenges remain.
Headquartered in Cincinnati, Procter & Gamble had around 108,000 employees worldwide as of June 2024.
In addition to layoffs, the company will stop selling some products in certain markets, with more details expected in July.
Like many businesses, Procter & Gamble is navigating a landscape where American consumers are cautious about spending amid persistent inflation concerns. Consumer confidence declined in May for the fifth consecutive month, with the University of Michigan’s consumer sentiment index dropping to 50.8, its second-lowest level in nearly 75 years.
Recently, the Congressional Budget Office reported that President Donald Trump’s tariff policies could reduce the federal deficit by $2.8 trillion over ten years but also predicted slower economic growth, higher inflation, and decreased household purchasing power overall.
The analysis expects tariffs to reduce U.S. imports from affected countries, raising inflation by about 0.4 percentage points in 2025 and 2026.
Procter & Gamble highlighted in April that tariffs on raw materials, packaging, and some finished products from China are hitting the company hard. The company is exploring alternative sourcing and productivity improvements to offset these costs but may need to increase prices on some items.
The Consumer Brands Association, which includes major food and consumer product companies like Coca-Cola, General Mills, and Procter & Gamble, warned that even though most goods are produced domestically, tariffs on imported critical ingredients—such as wood pulp for toilet paper and cinnamon—pose challenges due to domestic shortages.
