Procter & Gamble (P&G) will lay off 7,000 employees in the next two years. The company’s CFO Andre Schulten said that this layoff will happen globally.
Job cut: Procter & Gamble (P&G), one of the world’s leading FMCG companies, has made a big announcement. The company has said that it is going to lay off about 7,000 employees in the next two years. This step is part of a detailed restructuring plan, which the company has prepared in view of the current economic pressures and market uncertainties.
The company’s Chief Financial Officer Andre Schulten informed at the Deutsche Bank Consumer Conference held in Paris that these layoffs will be about 6% of the total workforce globally and about 15% of non-manufacturing positions. Schulten said that this step is necessary to implement the company’s long-term plans, but the current economic challenges will not be solved immediately.
Why was this step taken?
In the last few months, the costs of many FMCG companies around the world, including the US, have increased, especially due to import duties and supply chain problems. Apart from this, the spending tendency of customers has also declined, which has increased the pressure on companies to save profits. P&G says that it is not only reducing jobs, but is also preparing to stop selling some of its products in some markets. Detailed information about these changes will be shared in July.
P&G: A Look
Procter & Gamble (P&G) is an American multinational company, founded in 1837. This company manufactures products like Tide, Pampers, Gillette, Head & Shoulders. It does business in more than 100 countries around the world and is among the largest companies in the FMCG sector. In the last quarter of FY2024, P&G reported revenue of approximately $20.2 billion, which was slightly lower than expected. This was due to rising costs and lack of demand in some markets.
Recently there have been layoffs in other companies as well
Before this announcement by P&G, Unilever had also laid off hundreds of employees from its global headquarters this year. At the same time, FMCG giants like Coca-Cola, PepsiCo and Nestle are also reconsidering the number of employees. On the lines of the tech sector, now consumer goods companies are also on the path of automation, AI and cost reduction, due to which changes or reduction in the role of employees are being seen.
