P&G's Extensive Reorganisation: 7,000 Jobs at Risk
Cincinnati, vrijdag, 6 juni 2025.
Procter & Gamble announces a fundamental restructuring that will shake the industrial consumer goods sector. The company will eliminate 7,000 jobs over the next two years, representing approximately 15% of its non-production staff. This strategic shift is driven by economic uncertainty, changing consumer spending patterns, and challenging geopolitical conditions. The reorganisation encompasses not only personnel reduction but also the divestment of certain product categories and potential withdrawal from specific markets. P&G expects to operate more efficiently, innovate more quickly, and better respond to the challenging retail environment facing brands like Pampers, Tide, and Gillette.
Scale of Reorganisation
Procter & Gamble (P&G) will cut 7,000 jobs over the next two years, representing 6.481 percent of its total workforce of 108,000 employees. The job reduction will primarily affect non-production personnel, covering approximately 0.972 percent of this employee category [1][2].
Economic Background
The reorganisation is driven by several challenging economic factors. The geopolitical climate is described as ‘unpredictable’, particularly due to trade tariffs that have disrupted global markets. American tariffs have reportedly cost businesses at least $34 billion in lost sales and additional expenses [1][2].
Strategic Considerations
P&G expects to incur between $1 and $1.6 billion in costs over these two years, with approximately a quarter of these costs being non-cash. The company will also divest certain product categories and potentially withdraw from specific markets, with the aim of simplifying its organisational structure [1][2][3].
Production and Import
Approximately 90% of P&G’s products are manufactured in the United States, with raw materials, packaging materials, and some finished products imported from China. The company has recently exited markets such as Argentina and divested brands in countries including China, Latin America, and Europe [1][2].