Procter & Gamble Is Slashing 7,000 Jobs Amid Major Restructuring Push

Procter & Gamble is laying off about 7,000 employees over the next two years. With unpredictable tariff costs and erratic consumer demand, the household goods maker is undergoing some reorganization.

With around 108,000 workers as of June 2024, the job cuts represent about 6.5% of the workforce. The layoffs will mainly affect non-manufacturing jobs. Some P&G brands will be removed from its portfolio as well.

“We see more opportunities to make roles broader and teams smaller,” said CFO Andre Schulten at a conference in Paris, per The New York Times. 

According to Schulten, P&G is implementing a plan to mitigate any negative effects associated with U.S. tariff policy as well as the instability of the current geopolitical environment. Demand for P&G products has also weakened as consumers switch to cheaper alternatives to stretch their budgets.

“This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten said, according to AP News. “It does not, however, remove the near-term challenges that we currently face.”

Procter & Gamble Will Likely Raise Prices

In April, Procter & Gamble announced that U.S. tariff rules were significantly impacting raw material supplies and various finished products imported from China. As such, the company began looking for alternatives, yet also said price hikes will be necessary on some products. At the time, P&G CEO Jon Moeller noted prices are “likely” to increase sometime this summer.

While P&G is typically immune to economic turmoil as consumers still buy toilet paper, diapers, toothpaste, and other household goods, increased costs are leaving the company with little choice but to raise prices. A study by Reuters found tariffs on goods imported into the U.S. have cost global companies about $34 billion in lost sales and costs so far.

In the most recent quarter, P&G reported an overall 1% drop in sales volume. More specifically, the company’s baby, feminine, and family care segment decreased 2%, alongside its health division falling by 1%.

Last month, Procter & Gamble downgraded its sales and profit outlook for 2025. For the year, expected sales growth will be about 2% compared to 2024. Net earnings will likely increase between 6% and 8%.