Key Takeaways

• Procter & Gamble will cut 7,000 jobs and exit certain brands over the next two years.
• The move affects 6% of the global workforce, mainly non-manufacturing roles.
• The restructuring aims to refocus on high-margin personal care products amid global economic challenges.

Job Cuts and Brand Exits Amid Economic Challenges

Procter & Gamble (P&G) recently announced plans to eliminate 7,000 jobs and exit specific brands over the next two years in response to ongoing global economic uncertainty and declining consumer demand. This announcement was made during the Deutsche Bank Consumer Conference.

The restructuring will impact about 6% of P&G’s global workforce, with around 15% of non-manufacturing positions affected. This strategic move aims to simplify operations and reallocate resources to focus on the company’s core beauty and personal care brands, including well-known names like Olay, Old Spice, and Head & Shoulders.

Key challenges driving this decision include tariff pressures, unstable geopolitical conditions, and a slowdown in consumer spending. P&G has already implemented changes by exiting certain markets, such as Argentina, and divesting brands like Vidal Sassoon in China, as part of a broader effort to streamline its operations.

This strategic reset underscores P&G’s intention to concentrate on high-margin, high-growth segments within the personal care industry, which reflects a larger trend across the beauty sector. The focus is shifting towards enhancing brand equity and resilience in light of rising operational costs and changing global demand dynamics. By adopting this new strategy, P&G aims to fortify its market position, ensuring long-term viability and profitability in a challenging environment.

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