P&G layoffs: Consumer goods giant Procter & Gamble (P&G) announced plans to lay off approximately 7,000 employees, equivalent to about 15 per cent of its non-manufacturing workforce. The move is part of a two-year global restructuring programme aimed at improving efficiency and coping with macroeconomic challenges, including the impact of US trade tariffs.
The job cuts were revealed by P&G’s Chief Financial Officer Andre Schulten during the Deutsche Bank Consumer Conference on Thursday. As of June 30, the company employed roughly 108,000 people worldwide, according to regulatory filings.
Layoff result of Trump tariff pressures
One of the primary drivers behind the restructuring is the economic fallout from President Donald Trump’s tariffs. These trade measures have increased the cost of imported goods, pressuring manufacturers like P&G to raise prices to protect margins. Schulten confirmed the company expects the tariffs to cut three to four cents per share from its fourth-quarter earnings and project a $600 million pre-tax hit in fiscal 2026.
P&G has already experienced slowing growth in its largest market, the United States. In its fiscal third quarter, North American organic sales increased by just one per cent. The combination of higher input costs, weaker consumer demand, and ongoing trade uncertainties has put additional pressure on the company’s bottom line.
What we know about P&G’s restructuring plan
The restructuring effort goes beyond job cuts. P&G plans to reconfigure its supply chain, streamline its corporate structure, and reassess its product portfolio. Schulten indicated that details regarding potential exits from certain brands or markets will be shared during the company’s fiscal fourth-quarter earnings call in July.
P&G expects to incur $1 billion to $1.6 billion in non-core costs before taxes as part of the reorganisation. Schulten emphasised that while the restructuring is intended to support long-term growth and stability, it won’t fully offset the near-term challenges posed by trade policies and consumer demand volatility.
P&G’s layoffs follow similar moves by other US corporations, including Microsoft and Starbucks, which have also trimmed their workforces in response to economic headwinds. The trend underscores growing concern about the broader health of the US job market.
Investors are now closely watching upcoming labor data, particularly the nonfarm payrolls report for May. While April’s report was stronger than anticipated, ADP’s recent private sector hiring numbers suggest hiring has already begun to soften.
Market reaction
Following the announcement, P&G shares dipped over one per cent in morning trading. The company’s stock is down approximately two per cent in 2025, trailing the broader S&P 500 index, which has posted modest gains of over one per cent. P&G currently holds a market capitalisation of $407 billion.