Procter & Gamble is planning to eliminate around 7,000 jobs—approximately 15% of its nonmanufacturing workforce—as part of a broader two-year restructuring initiative that will also involve withdrawing from certain brands and markets.
CFO Andre Schulten disclosed the job cuts Thursday during a presentation at the Deutsche Bank Consumer Conference. He noted that “more details will be shared on the company’s fiscal fourth-quarter earnings call in July.”
The consumer goods giant, known for brands like Pampers, Tide, and Swiffer, is grappling with a combination of slowing growth in its key U.S. market and added cost pressures from tariffs imposed under President Donald Trump. These trade policies have pushed many companies, including P&G, to raise prices to manage increased expenses.
P&G, which employs 108,000 people globally as of June 30 according to regulatory filings, reported that North American organic sales rose just 1% in its fiscal third quarter—a sign of softening domestic demand.
Trump’s tariffs are expected to have a material financial impact on the company’s bottom line. Schulten said P&G anticipates “a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates,” and is projecting a $600 million pre-tax headwind from tariffs in fiscal 2026.
As part of the restructuring, P&G plans to streamline its corporate organization, overhaul its supply chain, and reassess its brand portfolio. Schulten stated that “investors can expect more details, like specific brand and market exits, on the company’s fiscal fourth-quarter earnings call in July.”
The company expects the reorganization to result in noncore costs ranging from $1 billion to $1.6 billion before taxes.
“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 said. “It does not, however, remove the near-term challenges that we currently face.”
P&G joins a growing list of large U.S. firms—including Microsoft and Starbucks—that have announced major workforce reductions in 2025. With Trump’s tariffs continuing to reshape corporate strategies, investors are closely watching Friday’s May nonfarm payrolls report for any signs of labor market weakening. While April’s government jobs data beat expectations, this week’s ADP report showed private-sector hiring was soft in May.
Shares of P&G fell more than 1% in morning trading Thursday following the announcement. The stock is down 2% year-to-date, underperforming the S&P 500’s more than 1% gain. P&G currently has a market capitalization of $407 billion.
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