Procter & Gamble (P&G) is to reduce up to 7,000 non-manufacturing roles – approximately 15% of its current non-manufacturing workforce – over the next two years.
Speaking at the 2025 Deutsche Bank Global Consumer Conference in Paris on 5 June, Andre Schulten, Chief Financial Officer, and Shailesh Jejurikar, Chief Operating Officer, said the move was a result of tariff-related costs and customers that have grown anxious about the economy.
They said: “Looking ahead, consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable. And technology is rapidly transforming nearly every aspect of daily life.
“At the same time, we can unlock significant growth by better meeting the needs of currently unserved and under-served consumers, expanding into new segments, and growing markets to best-in-class levels.”
In North America, the company estimates there is up to $5bn dollars of market potential in its categories, simply by “growing household penetration of our brands among currently unserved and under-served consumers.”
“In Europe, driving consumption and growing markets across the region to best-in-class levels — while just maintaining current market share in our existing categories — is more than a $10-billion-dollar opportunity.
“Positioning ourselves to best capture these growth opportunities and manage the increasing near-term challenges benefits from disciplined execution of our integrated growth strategy and even more disciplined resource allocation — human and financial.”
In Fiscal 2026, P&G will begin a two-year effort to “accelerate its growth and value creation.”
“These changes across our portfolio, supply chain and organisation are designed to unlock significant opportunities for stronger delivery of P&G’s integrated growth strategy.
“This is not a new approach, rather an intentional acceleration of the current strategy to widen P&G’s margin of advantage in superiority, fuelled by productivity, to win in the increasingly challenging environment in which we compete…” they said on Thursday.
Three main areas of focus: portfolio, supply chain and organization design
The portfolio choices include exits of some categories, brands, and product forms in individual markets. They may also include some brand divestitures.
“These portfolio moves enable the business to make related interventions in our supply chain — right-sizing and right-locating production to drive efficiencies, faster innovation, cost reduction and even more reliable and resilient supply.
“Finally, there will be additional changes to ensure an even more agile, empowered, and accountable organisation design — making roles broader, teams smaller, work more fulfilling and more efficient, including leveraging digitisation and automation.”
