Procter & Gamble to Slash Up To 7,000 Office Jobs Over 2 Years

Procter & Gamble has confirmed it will cut approximately 7,000 office jobs globally over the next 2 years. This accounts for about 15% of its non-manufacturing workforce. This is part of a broader cost-cutting and restructuring program for simplifying operations.

Job Cuts and Financials

As per news reports, the company said it expects to incur before-tax charges between $1 billion and $1.6 billion related to the restructuring, with around 25% of that expected to be non-cash. These costs will be recorded over the two-year period. P&G had around 108,000 employees worldwide as of June 2024.

Tariff and Cost Management

The decision comes at a time when P&G is facing increased costs due to U.S. tariffs on goods from countries like China. The company said it anticipates a $600 million before-tax impact in fiscal 2026 based on current tariff rates. It has already raised prices on some products and said it may continue to do so, while also exploring options like adjusting sourcing and formulations.

Slowdown in Markets

In its fiscal third quarter, P&G reported just 1% organic sales growth in North America, its largest market. The company has also lowered its full-year guidance in recent months due to rising costs and weaker demand.

Read more: Tide Maker P&G Lowers Annual Outlook Amid Tariffs and Soft Global Demand!

P&G Portfolio 

As part of the restructuring, P&G is reviewing its global brand portfolio. The company said it may exit certain product categories and divest some brands in select regions. It has already exited the Argentina market, restructured operations in Nigeria, and divested brands in China, Latin America, and Europe.

The stock has declined 2% so far in 2025, compared to a 1% gain in the S&P 500 index.

Conclusion

The restructuring will take place gradually over 2 years. The company will share more details, including possible market exits, during its next earnings call in July.

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