Procter & Gamble, the consumer goods giant, will reduce 7,000 jobs worldwide over the next two-years as it copes with increased economic pressures.
The company that runs brands like Pampers and Ariel is undertaking a restructuring which will result in the reduction of approximately 6% or 15% of their non-manufacturing staff.
Andre Schulten, the chief financial officer of the company, said at a consumer event on Thursday: “This program is an important first step in ensuring that we can deliver our algorithm for two to three more years.
It does not remove the immediate challenges we face today.
The company stated that it was coping with US tariffs and cost of living pressures.
P&G reported in April that the US tariffs were having an impact on its raw materials and packaging, as well some of its finished products, which are sourced from China. President Trump’s tariffs have been a major factor.
It said that it would explore different options for sourcing and ways to increase productivity. However, it would have to raise the prices and possibly look at other efficiencies.
The company has around 2,500 employees working in the UK. However, the exact location of the job cuts is still unknown.
Schulten stated that the restructuring program would start in the second half this year. This includes reducing the size of management teams, and utilizing more automation and digitalisation.
), a bigger than forecast drop, he added.
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