Procter & Gamble to Cut 7,000 Jobs as Economic Pressures Mount

2025-06-06 companies

Cincinnati, Thursday, 5 June 2025.
Procter & Gamble is shedding 7,000 non-manufacturing jobs to streamline operations amid economic uncertainty and tariff challenges, impacting 15% of its non-manufacturing workforce over two years.

Economic Context and Impacts

Procter & Gamble, listed under the ticker symbol PG, has disclosed plans to eliminate 7,000 jobs, making up approximately 6% of its global workforce, or 15% of its non-manufacturing positions, over the next two years [1][2][3][4]. This decision is part of a strategic restructuring aimed at enhancing operational efficiency amid a backdrop of economic uncertainty predominantly influenced by tariff pressures and cautious consumer spending [3][5].

Strategic Adjustments and Responses

The restructuring announcement was initially made at the Deutsche Bank Consumer Conference in Paris, where Procter & Gamble’s Chief Financial Officer, Andre Schulten, stated that these efforts are essential to maintaining competitiveness and robustness in the face of ongoing economic challenges [4][6]. In addition to workforce reductions, the company indicated potential changes in its product portfolio, which may include strategic divestitures, though specifics on which brands might be impacted remain undisclosed until their upcoming earnings call set for July 29, 2025 [1][2].

Market and Industry Reactions

The market responded to Procter & Gamble’s announcement with a slight dip in stock value by over 1% in morning trading following the job cut notice [4][6]. This reflects investor concerns about the company’s immediate future amidst uncertain economic conditions, exacerbated by factors such as tariff impacts resulting in projected pre-tax costs between $1 billion and $1.6 billion [6][7]. Procter & Gamble’s strategic focus on digitization and automating processes aims to offset these pressures and drive sustainable growth [1].

Broader Economic Implications

Procter & Gamble’s decision echoes a wider trend in the U.S. market where job cuts increased by 47% in May 2025 compared to the same month in the previous year, as reported by Challenger, Gray & Christmas, an outplacement firm [1][2]. With the recent ADP report highlighting weak private sector hiring, these developments forecast turbulent times ahead for the job market [4]. Furthermore, the company aligns with other major corporations, like General Motors and Citigroup, which are also undergoing structural shifts in response to the complex economic landscape [6][7].

Sources

job cuts Procter & Gamble