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P&G Slashes 7,000 Jobs as Tariffs Shake Up Strategy
Procter & Gamble will cut 7,000 jobs. As part of a two-year restructuring plan to offset rising costs and challenges from Trump’s tariffs.
Venezuela's first tech hub in offices P&G left five years ago amid an historic economic collapse. Photographer: Carolina Cabral/Bloomberg via Getty Images
Procter & Gamble will cut 7,000 jobs. Or roughly 15 percent of its non-manufacturing workforce. As part of a two-year restructuring program.
The layoffs by the consumer goods giant come as President Donald Trump’s tariffs have led a range of companies to hike prices to offset higher costs. The trade tensions have raised concerns about the broader health of the U.S. economy and job market.
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P&G Chief Financial Officer Andre Schulten announced the job cuts during a presentation at the Deutsche Bank Consumer Conference on Thursday morning. The company employs 108,000 people worldwide, as of June 30, according to regulatory filings.
P&G faces slowing growth in the U.S., the company’s largest market. In its fiscal third quarter, North American organic sales rose just 1 percent. Trump’s tariffs have presented another challenge for P&G. Which has said that it plans to raise prices in the next fiscal year, starting in July. The company expects a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates, Schulten said. Looking ahead to fiscal 2026, P&G is projecting a headwind from tariffs of $600 million before taxes.
P&G, which owns Pampers, Tide, and Swiffer, is planning a broader effort to reevaluate its portfolio. Restructure its supply chain, and slim down its corporate organization. Schulten said investors can expect more details. Including specific brands and market exits. On the company’s fiscal fourth-quarter earnings call in July.
The company is projecting that it will incur noncore costs of $1 billion to $1.6 billion before taxes due to the reorganization. “This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten said. “It does not, however, remove the near-term challenges that we currently face.”
P&G follows other major U.S. employers. Including Microsoft and Starbucks, in carrying out significant layoffs this year. As Trump’s tariffs take hold, investors are watching Friday’s non-farm payrolls report for May. Looking for signs of whether the job market has started to slow. While the government reading for April was better than expected, a separate reading this week from ADP showed private sector hiring was weak in May.
Shares of P&G fell more than 1 percent in morning trading on the news. Their stock has dropped 2 percent so far this year. Outstripped by the S&P 500’s gains of more than 1 percent. P&G has a market cap of $407 billion.
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