Procter & Gamble (P&G), the iconic maker of household staples like Tide detergent, Pampers diapers, and Bounty paper towels, has announced plans to cut up to 7,000 jobs worldwide. This move is part of a broader restructuring effort aimed at navigating challenging economic conditions.
The announcement was made by P&G’s Chief Financial Officer, Andre Schulten, during the Deutsche Bank Consumer Conference in Paris on June 5, 2025. Schulten described the restructuring as “an important step toward ensuring our ability to deliver our long-term goals over the coming two to three years.” However, he acknowledged that the cuts do not immediately resolve the near-term challenges the company faces.
The job reductions represent approximately 6% of P&G’s global workforce of around 108,000 employees, as of June 2024. Notably, the cuts will disproportionately affect non-manufacturing roles, accounting for about 15% of those positions. The layoffs are expected to roll out over the next two years.
The decision reflects the company’s efforts to boost productivity and reduce costs amid an “increasingly challenging environment.” P&G is grappling with tariff-related expenses and shifting consumer behaviors, as households grow more cautious about spending due to economic uncertainty.
Beyond the workforce reduction, P&G is implementing organizational changes to create “an even more agile, empowered, and accountable organization design.” This includes broader roles, smaller teams, and greater efficiency through digitization and automation. However, the company has not yet disclosed which regions or specific work sites will be most impacted by the layoffs.
The restructuring extends beyond personnel. P&G also plans to discontinue sales of certain products in specific markets and is exploring potential “brand divestitures.” While details about which brands might be affected remain unclear, the company has promised further updates, likely during its next earnings call on July 29, 2025.
The announcement comes on the heels of P&G’s April earnings report, which revealed declining sales growth. In the third quarter, net sales reached $19.8 billion, marking a 2% year-over-year decrease. The company attributed this performance to difficult consumer and geopolitical conditions.
P&G is not alone in its belt-tightening. According to Andrew Challenger of Challenger, Gray & Christmas, an outplacement firm, businesses across industries are “spending less, slowing hiring, and sending layoff notices” amid tariff uncertainty and changes in consumer spending. U.S. job cuts surged by 47% in May 2025 compared to the same month in 2024.
Founded in 1837 as a humble soap and candle company, Procter & Gamble has grown into a global consumer goods giant, headquartered in Cincinnati, Ohio. Its portfolio of trusted brands has made it a fixture in households worldwide for over 180 years.
P&G’s Chief Financial Officer, Andre Schulten, emphasized during the announcement that the restructuring program is a strategic move to align the company with its long-term objectives. He stated, “This restructuring is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years.” This approach underscores the company’s commitment to maintaining its competitive edge despite current economic challenges.
The organizational changes aim to enhance P&G’s operational efficiency through digitization and automation. By streamlining processes and adopting advanced technologies, the company seeks to reduce operational costs and improve productivity. These measures are expected to create a more agile and responsive organization, better equipped to adapt to market fluctuations and consumer demands.
The decision to discontinue certain products in specific markets and consider brand divestitures reflects P&G’s strategic portfolio management. While the company has not disclosed which brands or products are under review, this move is part of a broader effort to focus on core businesses and optimize resources. Further details on these changes are anticipated during the upcoming earnings call on July 29, 2025.
The restructuring efforts are part of a larger trend across industries, as companies navigate economic uncertainty and shifting consumer behaviors. According to Andrew Challenger of Challenger, Gray & Christmas, the rise in job cuts reflects a broader strategy among businesses to reduce costs and adapt to challenging conditions. This trend highlights the necessity for companies like P&G to reevaluate their operations and align with long-term strategic goals.
Conclusion
Procter & Gamble’s announcement to cut up to 7,000 jobs worldwide marks a significant step in the company’s efforts to navigate challenging economic conditions. The restructuring plan, which includes organizational changes, digitization, and potential brand divestitures, aims to enhance productivity and reduce costs. While the layoffs represent a difficult decision, they align with P&G’s long-term strategic goals to remain competitive and agile in an uncertain market. The company’s commitment to adapting its operations and portfolio reflects a broader industry trend of streamlining resources to weather economic storms.
Frequently Asked Questions
How many jobs is P&G cutting?
Procter & Gamble plans to cut up to 7,000 jobs worldwide, representing approximately 6% of its global workforce.
Which roles are most affected by the layoffs?
The job reductions will disproportionately affect non-manufacturing roles, accounting for about 15% of those positions.
Why is P&G restructuring?
P&G is restructuring to boost productivity, reduce costs, and adapt to challenging economic conditions, including tariff-related expenses and shifting consumer behaviors.
When will the layoffs take place?
The layoffs are expected to roll out over the next two years, with specific details about impacted regions and work sites yet to be disclosed.
What other changes is P&G making besides layoffs?
Beyond the workforce reduction, P&G is implementing organizational changes, discontinuing sales of certain products in specific markets, and exploring potential brand divestitures.