NEW YORK, June 5 (Xinhua) -- U.S. consumer goods giant Procter & Gamble (P&G) on Thursday revealed its plan to eliminate 7,000 non-manufacturing jobs, approximately 15 percent of its current total non-manufacturing workforce.
The reduction of workforce will take place over the next two fiscal years staring from July 1, 2025, according to a release by P&G.
"Specific impacts by region or site are not available at this time," the company added.
In response to the job cuts, P&G stated, "As always, employee separations will be managed with support and respect, and in line with our principles and values and local laws."
This initiative is part of a broader strategy to accelerate growth and value creation by enhancing productivity across the company's portfolio, supply chain, and organization design. This move is expected to result in pre-tax charges between one billion U.S. dollars and 1.6 billion U.S. dollars over the next two fiscal years, according to the release.
P&G plans to divest certain brands and product categories, particularly in markets where it faces economic challenges. Additionally, P&G aims to enhance supply chain efficiency by right-sizing and right-locating production. The company also intends to create a more agile organizational structure, incorporating digitization and automation to drive further efficiency gains.
The announcement was made during the 2025 Deutsche Bank Global Consumer Conference, where P&G's executives emphasized the importance of these strategic adjustments in maintaining the company's competitive edge in the consumer goods industry.
The restructuring does not remove the near-term challenges facing P&G now, according to P&G Chief Financial Officer Andre Schulten.
Current tariffs would result in a three cent to four cent-per-share drag on P&G's earnings in its fiscal fourth-quarter ending on June 30, according to Schulten.
Tariffs also are expected to cost the company 600 million U.S. dollars in fiscal year 2026, which starts from July 1, 2025. ■