Procter & Gamble announced plans to eliminate 7,000 jobs globally over the next two years, citing the need to cut costs and restructure its operations as it grapples with sluggish demand and uncertainty surrounding global trade tariffs.
The job cuts, which represent roughly 15% of the company’s non-manufacturing workforce, were disclosed during a presentation at a business conference in Paris on Thursday. P&G, the U.S.-based consumer goods giant behind brands such as Gillette, Tide, and Pampers, did not specify which regions or departments would be most affected.
As part of the broader restructuring, the company also plans to divest several product categories and brands, signaling a strategic pivot to focus on its core high-performing businesses. The move comes as the company faces mounting pressure from softer consumer spending and ongoing geopolitical volatility, including the lingering effects of tariffs introduced during the Trump administration.
“In today’s environment, we are seeing a more cautious consumer, which is leading to reduced consumption across key markets,” the company stated. In April, P&G lowered its full-year sales and earnings forecasts, citing growing consumer nervousness and macroeconomic headwinds.
For the 2025 fiscal year, P&G now expects organic sales growth of just 2%, down from its previous estimate of 3–5%. The downgrade underscores the company’s struggle to maintain momentum in a market defined by price sensitivity and trade friction.
The planned job reductions are the latest in a series of cost-cutting measures by multinational corporations seeking to adapt to weaker global growth and tighter margins. Analysts note that P&G’s focus on trimming non-manufacturing roles suggests a deeper effort to reshape its corporate structure and improve agility in a changing retail environment.
While P&G has not disclosed details about the severance packages or regional impact of the cuts, more information is expected to emerge in the coming months as the company rolls out the restructuring plan.
Despite the challenges, P&G executives reiterated the company’s commitment to long-term growth, stating that divestitures and organizational changes will allow it to “streamline operations, sharpen focus, and invest more effectively in innovation and brand strength.”
