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Procter & Gamble to lay off 7,000 employees: WSJ

  • By Al Mayadeen English
  • Source: The Wall Street Journal
  • 6 Jun 2025 08:44
3 Min Read

Procter & Gamble plans to cut 7,000 non-manufacturing jobs worldwide as part of a major restructuring effort in response to declining sales and evolving market conditions.

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  • Flags fly outside the Proctor & Gamble headquarters complex in downtown Cincinnati, on July 9, 2015.
    Flags fly outside the Procter & Gamble headquarters complex in downtown Cincinnati on July 9, 2015. (AP)

Procter & Gamble (P&G) plans to lay off approximately 7,000 employees, about 15% of its global non-manufacturing workforce, over the next two years, according to a report by The Wall Street Journal (WSJ) on Thursday.

The job cuts are part of a broader workforce restructuring initiative aimed at streamlining operations and improving internal efficiency.

The consumer goods giant, known for household brands such as Tide detergent, Pampers diapers, and Bounty paper towels, employed around 108,000 people as of June last year.

In April, P&G reported a decline in quarterly sales and lowered its full-year sales forecast, citing continued consumer uncertainty and an increasingly volatile geopolitical landscape. These challenges have prompted many multinational companies, including P&G, to reassess their operational strategies and cost structures.

Tariffs and economic uncertainty impacting operations

The company emphasized that the reorganization is not intended as a cost-cutting measure. Instead, the layoffs are part of an effort to implement a more efficient work model, one that features broader employee roles and smaller, more agile teams.

Nonetheless, P&G acknowledged that persistent cost pressures, including tariffs and global economic volatility, have influenced its approach. In response, the company has explored changes in product formulations, selective price increases, and operational adjustments to better navigate the evolving landscape.

According to The Wall Street Journal, these steps align with broader trends across industries. Since the onset of global trade tensions during the Trump administration, many companies have proactively sought ways to manage costs and prepare for potential economic slowdowns.

Over the past decade, P&G has steadily narrowed its business focus to concentrate on high-demand, daily-use product categories, according to The Wall Street Journal.

As part of this strategy, the company has gradually exited smaller or underperforming segments, including the sale of its Vidal Sassoon hair care brand in China last year.

This strategic repositioning has also involved additional divestments in Europe and Latin America, as the company realigns its portfolio around core brands with strong global traction.

As competition within the consumer goods sector intensifies and consumers become increasingly price-sensitive, P&G’s restructuring efforts reflect a continued adaptation to shifting market dynamics, emphasizing operational agility and a sharper focus on its most resilient product lines.

  • Procter & Gamble
  • United States
  • US economy

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