U.S. household, hygiene and toiletry products giant Procter & Gamble (P&G) said on Thursday, June 15, it plans to cut 7,000 jobs over two years as part of a plan it said aims to accelerate growth and mitigate the anticipated negative impacts of the trade war.
“For fiscal year 2026, we will initiate a two-year restructuring plan focused on non-core activities,” announced André Schulten, the group’s Chief Financial Officer, at an annual conference organized by Deutsche Bank in Paris.
The plan involves restructuring the supply chain, streamlining the brand portfolio, and eliminating 7,000 positions in non-industrial units—approximately 15% of the company’s non-manufacturing workforce, P&G said.
The portfolio reorganization will include ending some “categories, brands and product forms in individual markets” and could include some brand divestitures. These portfolio moves will enable the business to adapt the supply chain to the new market environment by right-sizing and right-locating production.
During the conference, the group cited ongoing tensions in the Middle East and Ukraine as key factors behind these decisions, noting that they continue to weigh on consumer sentiment.
P&G also noted that the tariffs announced by the Trump administration “add further volatility,” which the company is monitoring closely. These include direct costs associated with moving raw materials and finished goods across borders, as well as effects on exchange rates, interest rates, and potential shifts in consumer behavior driven by nationalism.
“Based on current tariff rates, we estimate the headwind will be approximately USD 600 million pre-tax,” the group said.
When it published its quarterly results in April, the group — whose brands include Tide detergent, Head&Shoulders shampoo and Crest toothpaste — announced a decline in sales and lowered its annual targets for 2025. CEO Jon Moeller reported a “difficult and volatile consumer and geopolitical environment.”
