Procter & Gamble said Thursday it will cut 7,000 jobs over the next two years, or about 15% of its non-manufacturing workforce.
Procter & Gamble, whose brands include Tide detergent, Bounty paper towels and Pampers diapers, has a total global workforce of 108,000 people.
Along with the workforce reduction, Procter & Gamble said it would also make changes to its portfolio, including possible “brand divestitures.”
Shares of Procter & Gamble were up 0.1% in pre-market trading.
Procter & Gamble made $19.8 billion in net sales in Q3, down 2% from the year prior.
Procter and Gamble announced on Thursday that it will eliminate 7,000 positions, or roughly 15% of its non-manufacturing workforce, over the next two years.
The consumer goods giant said in a statement that it wants to reduce expenses and increase productivity as it competes in what it calls an “increasingly challenging environment.”. “,”.
The company said, “Finally, there will be additional changes to ensure an even more agile, empowered, and accountable organization design — making roles broader, teams smaller, work more fulfilling and more efficient, including leveraging digitization and automation.”.
Which areas or workplaces would be directly affected by the layoffs were not specified by the company.
108,000 people work for Procter & Gamble worldwide, which owns the brands Pampers diapers, Bounty paper towels, and Tide detergent.
Procter & Gamble stated that it would alter its portfolio in addition to reducing its workforce, possibly through “brand divestitures.”. Which brands would be affected was not made clear.
The business stated, “More details will be shared in the months ahead.”.
A representative for Procter & Gamble directed CBS MoneyWatch to the company’s online statement when contacted for comment.
During pre-market trading, Procter & Gamble’s stock was up 0.1 percent.
The business cited a difficult consumer and geopolitical environment as the reason for its poor sales growth in its April earnings statement. In the third quarter, Procter & Gamble’s net sales came to $19,8 billion, a 2% decrease from the previous year.
The next earnings call for the company is scheduled for July 29.
In the face of shifting consumer spending patterns and tariff uncertainty, workforce reductions are occurring across industries, not just at consumer goods companies like Procter & Gamble.
In a Thursday email statement, Andrew Challenger, senior vice president of Challenger, Gray & Christmas, stated, “Companies are spending less, slowing hiring, and sending layoff notices.”.
Total U. S. . According to outplacement firm Challenger, Gray & Christmas, the number of job cuts in May increased by 47% over the same month the previous year.
