Procter & Gamble on Thursday announced its intention to eliminate around 7,000 jobs, or almost 6% of the total workforce, in the next two years, the US giant of consumer goods that cites an unequal demand due to the uncertainty linked to customs tasks.
P&G also plans to retire from certain categories, brands and formats of products in specific markets, managers said at a Deutsche Bank conference in Paris, adding that retreats could also include brands.
The company had around 108,000 employees on June 30, 2024 and said that employment cuts would represent about 15% of its non -industrial workforce.
The new Biennial P&G plan occurs when the company, like many other consumer goods companies, anticipates an increase in costs related to the commercial war and must face a mast demand.
6% of the workforce
In April, the group announced an increase in prices in certain products and said it was ready to activate all levers at your disposal to mitigate the impact of customs tasks.
On Thursday, the financial director of P&G, Andre Schulten, and the director of Operations Shailesh Jejurikar, acknowledged that the geopolitical environment was “unpredictable” and that consumers faced a “greater uncertainty.”
“This is not a new approach, but rather an intentional acceleration of the current strategy aimed at expanding the margin of P&G more in terms of superiority, driven by productivity, to gain in the increasingly difficult environment in which we are in competition,” said the directors.
P&G added that the restructuring plan would help simplify the organizational structure by “expanding roles and reducing the size of the equipment.”
The settings provided in their product portfolio should also allow the company to adapt its supply chain to reduce costs, P&G said.
Source: BFM TV
