Procter & Gamble to Cut 7,000 Jobs Amid Tariff Pressures and Economic Uncertainty

Procter & Gamble (P&G), the global consumer goods giant behind household brands such as Tide and Pampers, announced plans to cut up to 7,000 jobs over the next two years, as it grapples with rising tariff-related costs and shifting consumer sentiment amid global economic uncertainty.

The announcement came Thursday during the Deutsche Bank Consumer Conference in Paris. P&G’s Chief Financial Officer, Andre Schulten, said the layoffs will affect about 6% of the company’s total workforce and approximately 15% of its non-manufacturing employees.

“This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten told investors. “It does not, however, remove the near-term challenges that we currently face.”

Headquartered in Cincinnati, Ohio, Procter & Gamble employed around 108,000 people globally as of June 2024. The company did not specify which locations or departments would see job losses but indicated that more details would be shared in July, including plans to discontinue some product lines in select markets as part of the broader restructuring.

The job cuts come as the company continues to contend with rising input costs linked to tariffs on imported raw materials and packaging components, particularly those sourced from China. In April, P&G highlighted that tariffs were significantly impacting key materials such as pulp, packaging, and certain finished goods, prompting the company to explore alternative sourcing strategies and productivity improvements. However, executives noted that price increases on some consumer products may still be necessary.

The announcement follows similar warnings from the Consumer Brands Association (CBA), which represents major companies like Coca-Cola and General Mills. The CBA has raised concerns about tariffs on essential imports — including materials such as cinnamon and wood pulp — that are not readily available from domestic sources.

Despite the cost pressures, P&G remains focused on preserving its profitability and maintaining long-term growth targets. Schulten emphasized the need to streamline operations and boost efficiency across the company’s global supply chain.

Industry analysts view P&G’s decision as a reflection of broader economic headwinds, including inflationary pressures, shifting trade dynamics, and cautious consumer spending. The company’s strategic realignment, they say, is aimed at safeguarding competitiveness in an increasingly volatile global marketplace.