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Procter & Gamble plans to eliminate 7,000 jobs globally over the next two years, with the company citing geopolitical pressures, trade tariff policy chaos, and weaker consumer spending as key factors behind the move.
The workforce reduction represents approximately 6% of its total employees and around 15% of its non-manufacturing headcount.
Company leaders revealed the plans during a Deutsche Bank Consumer Conference in Paris, describing the initiative as a strategic acceleration rather than a departure from its current approach.
“This is not a new approach, rather an intentional acceleration of the current strategy ... to win in the increasingly challenging environment in which we compete,” executives said.
P&G brands to go
The restructuring will also see P&G exit select brands and product categories in certain global markets. Those divestitures will further support the company’s intention to simplify its operating model, with broader roles and smaller teams aimed at boosting operational agility.
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Chief Financial Officer Andre Schulten and Chief Operating Officer Shailesh Jejurikar noted the growing unpredictability in both global politics and consumer confidence. “The geopolitical environment was unpredictable,” and consumers are facing “greater uncertainty,” the executives told attendees.
P&G estimated that US tariffs could cost the company as much as $600 million before tax in fiscal 2026, based on current rates.
The company added that shifting tariff policies had already caused substantial disruption across the consumer goods sector. A Reuters analysis estimated the broader trade war has cost companies over $34 billion in lost sales and increased costs.
Strategy emphasizes cost-cutting and brand consolidation
P&G had already signalled an intent to raise prices earlier this year and said it was ready to “pull every lever” to offset the financial impact of tariffs. Those levers include increased pricing and aggressive cost-reduction measures.
Analysts suggest that the two-year restructuring timeline gives P&G the flexibility to adapt as trade conditions evolve.
“The two-year window ... gives them some flexibility in terms of timing and depth of cuts, as the tariff situation is very fluid,” said Christian Greiner, senior portfolio manager at F/m Investments.
The company expects to record between $1billion and $1.6billion in before-tax charges over the course of the plan, with about 25% of those expected to be non-cash.
As part of its broader simplification strategy, P&G has recently withdrawn from the Argentina market, reorganized its Nigerian operations, and offloaded regional hair care and personal product brands in China, Latin America, and Europe.
Michael Ashley Schulman, chief investment officer at Running Point Capital, described the company’s approach as “spring cleaning at scale.”
While 90% of the products P&G sells in the US are manufactured domestically, it still imports ingredients, packaging, and finished goods from China. The tariff uncertainty continues to challenge companies across the sector, putting jobs under threat, creating actual job losses and impacting morale, engagement and wellbeing, requiring HR departments to mitigate against the more adverse effects, while second-guessing what might come next.
