Procter & Gamble is slashing 7,000 jobs and pulling products from global markets as it braces for rising costs, tariffs, and weakened consumer demand.
At a Glance
- Procter & Gamble will cut 7,000 jobs globally over two years.
- Non-manufacturing roles will see the largest impact, affecting 15% of that sector.
- Rising tariffs, inflation, and supply chain costs are key drivers of the cuts.
- The company will withdraw some products from international markets.
- Consumers may face higher prices on popular household goods.
Major Workforce Reduction
In a sweeping restructuring plan revealed at the Deutsche Bank Consumer Conference in Paris, Procter & Gamble CFO Andre Schulten announced the elimination of 7,000 jobs worldwide. The cuts—equivalent to about 6% of the company’s global workforce—will primarily affect corporate and administrative roles, not factory workers.
P&G, which employs approximately 108,000 people globally and produces brands like Pampers, Gillette, and Tide, said the layoffs are necessary to remain agile. “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, acknowledging that short-term challenges persist.
Economic Pressures and Market Pullbacks
The job cuts are just one component of a broader strategy. P&G also plans to withdraw underperforming product lines from select global markets, though specifics will be shared in July. These adjustments are designed to sharpen focus on high-margin offerings in core regions.
Underlying these decisions is a web of mounting economic pressures. Rising U.S. tariffs on Chinese imports have driven up raw material costs, forcing companies like P&G to absorb higher production expenses. Simultaneously, consumer confidence has fallen sharply, evidenced by a sustained drop in the University of Michigan’s sentiment index, creating a squeeze on household spending.
Watch a report: P&G cuts 7,000 jobs amid economic and tariff strain.
Industry Impact and Consumer Consequences
The Congressional Budget Office has warned that while tariffs might narrow federal deficits, they risk triggering inflation and slowing economic growth—outcomes now playing out across the consumer goods sector. The Consumer Brands Association also flagged serious supply chain disruptions stemming from restricted imports.
For shoppers, this could mean higher prices on essentials as P&G passes on increased costs. Other consumer giants may soon follow suit, initiating their own cutbacks or price hikes in response to similar pressures.
As global inflation and protectionist policies tighten their grip, P&G’s restructuring signals a broader industry reckoning—and a recalibration of how major brands survive in an increasingly volatile market.
