Procter & Gamble (P&G) has announced a significant restructuring plan that includes layoffs affecting approximately 7,000 jobs. The P&G layoffs, revealed on June 5, 2025, at the Deutsche Bank Global Consumer Conference in Paris, targets white-collar cuts, particularly in non-manufacturing roles, representing about 15% of its non-production workforce. As layoffs at P&G dominate headlines, the company faces sales decline, tariff uncertainties, and shifting consumer behavior.
Why is P&G Cutting 7,000 Jobs? Understanding the layoff reasons
The 7,000 job cuts at P&G are part of a broader restructuring layoffs strategy aimed at streamlining operations and ensuring long-term competitiveness. According to Chief Financial Officer, Andre Schulten, the P&G layoffs reasons are not solely tied to cost-cutting but are instead focused on reorganizing the company’s structure. The restructuring involves forming smaller, more agile teams with broader responsibilities. However, several external factors are driving these Procter Gamble job cuts:
P&G Sales Decline and Slow Growth: In its third-quarter fiscal 2025 earnings, P&G reported a 2% drop in net sales, totaling $19.8 billion, compared to the previous year. This Procter sales slip reflects a challenging consumer environment and geopolitical tensions, contributing to P&G slow growth. The company has revised its fiscal 2025 outlook, now anticipating flat sales growth, down from an earlier projection of 2-4%.
Consumer Uncertainty: A KPMG survey in April 2025 found that 50% of U.S. consumers are cutting back spending due to tariff-related costs, with over 70% expecting a recession within the next 12 months. This shift in consumer behavior has fueled P&G profitability layoffs as the company braces for muted demand.
Despite these challenges, P&G insists that the Procter job cuts despite sales are strategic, not purely reactive, as the company seeks to exit underperforming product categories and markets.
Impact on Corporate HQ and Global Workforce
With a global workforce of approximately 108,000 as of June 2024, the global layoffs at P&G will affect roughly 6% of its employees. The corporate HQ layoffs are particularly significant, as P&G’s Cincinnati, Ohio, headquarters employs about 10,000 people. The company has not specified how many layoffs will occur in Cincinnati. The focus on P&G white-collar cuts suggests that administrative and managerial roles are at risk.
Procter Gamble workforce cuts are expected to cost between $1 billion and $1.6 billion, with a projected hit of 3-4 cents per share to earnings in the fiscal fourth quarter. More details are anticipated during P&G’s next earnings call on July 29, 2025.
What’s Next for P&G Careers and Workforce?
As P&G navigates layoffs in 2025, the company is also exploring brand divestitures and portfolio trimming, though specific brands targeted for exit remain undisclosed. This strategic shift could reshape P&G’s market presence and employee landscape.
The Procter & Gamble layoffs of 7,000 jobs mark a significant restructuring effort as it grapples with slow growth, tariff challenges, and a sales slip. The company frames these P&G workforce cuts as a proactive step toward long-term resilience. As Procter layoffs news continues to unfold, stakeholders will closely watch P&G’s next moves, from brand divestitures to potential price hikes, in a volatile global market.
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