Quick overview

---

Procter and Gamble will eliminate 7,000 jobs, or about 15% of its non-manufacturing workforce. The consumer goods behemoth’s layoffs coincide with some businesses raising prices to offset increased costs because of President Donald Trump’s tariffs.  P&G CFO Andre Schulten revealed the layoffs.

 

The company had 108,000 employees worldwide as per the latest regulatory filings.

The US, P&G’s biggest market, is seeing slower growth. North American organic sales increased by just 1% during the third quarter of its fiscal year.

P&G has stated that it intends to raise prices in the upcoming fiscal year, which begins in July, but Trump’s tariffs have created yet another obstacle. The company anticipates that levies will reduce its fiscal fourth-quarter earnings by 3 to 4 cents per share.

Pampers, Tide, and Swiffer are all owned by P&G, which is preparing a larger initiative to reassess its holdings, reorganize its supply chain, and streamline its corporate structure. According to Schulten, investors should anticipate additional information during the company’s fiscal fourth-quarter earnings call in July, including specific brand and market exits.

According to P&G’s projections, the reorganization will result in non-core costs of $1 billion to $1.06 billion before taxes.

Schulten stated that this restructuring program was crucial to guarantee that we can deliver our long-term algorithm over the next two to three years.

However, it doesn’t eliminate the immediate problems we are currently facing. P&G has implemented large layoffs this year, following in the footsteps of other prominent US employers like Microsoft and Starbucks. Investors watch for Friday’s nonfarm payrolls report for May for indications that the job market shows weakness as Trump’s tariffs take effect. while reading for the government.