P&G plans to cut 7,000 jobs in non-manufacturing departments over 2 years
P&G said that to tackle the tariffs, it would consider "cost-cutting measures, alter product formulations, and raise prices on some items".
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Multinational consumer goods corporation, Procter & Gamble plans to layoff 15% of its global workforce over the next two years. The FMCG giant has planned to cut 7,000 jobs in non-manufacturing departments, according to a report by Wall Street Journal.
The maker of Tide detergent and Pampers diapers is grappling with weakening consumer demand and higher costs from tariffs. In April, P&G reported a decline in quarterly sales and lowered its fiscal-year sales forecast.
During the quarterly earnings call, the company said that to tackle the tariffs, it would consider "cost-cutting measures, alter product formulations, and raise prices on some items".
However, P&G said the layoffs are not intended to reduce costs but to improve organizational efficiencies. According to WSJ, P&G said, "Job cuts are part of a broader reorganization to create a better work structure, with broader roles and smaller teams".
The FMCG firm has narrowed the number of categories of its daily-use products. Last year it sold its Vidal Sassoon hair care brand in China.
In the past few years, P&G has divested smaller brands in Europe and Latin America as well to streamline its business.
