Procter & Gamble (P&G), the global FMCG giant behind brands like Gillette, Ariel, and Pampers, has announced a significant corporate restructuring initiative that will result in 7,000 job cuts across its non-manufacturing workforce over the next two years. The decision is aimed at improving productivity and controlling escalating operational costs, according to a corporate presentation published on its official website.
A Strategic Shift to Manage Cost Pressures
The planned layoffs will affect approximately 15% of P&G’s global white-collar employees, primarily from departments not directly involved in manufacturing or revenue generation. These include:
- Human Resources (HR)
- Finance and Accounting
- Legal and Compliance
- Research & Development (R&D)
- Corporate Affairs and IT
Manufacturing operations, however, will remain unaffected.
P&G cited increasing financial pressure from rising raw material costs, shipping expenses, and global tariffs—contributing to $1–1.5 billion in additional costs—as a major factor behind the move. Though the company has tried to offset the impact through product price hikes, those efforts have not fully absorbed the financial strain.
Focus on Digital Transformation and Efficiency
The restructuring is part of a broader digital transformation strategy at P&G, focused on:
- Simplifying internal workflows
- Automating repetitive processes
- Aligning talent and investment with core growth areas
The aim is to make the organization leaner and more agile amid shifting global consumer behavior and persistent inflation.
P&G Joins Global Wave of Corporate Restructuring
P&G’s decision follows similar moves by other multinational corporations striving to weather economic uncertainty and changing demand patterns. Once considered recession-proof, even the FMCG sector is now being reshaped by evolving market dynamics and geopolitical trade tensions.
While the move is expected to enhance long-term operational efficiency, it also signals the challenges even the most established global brands face in maintaining profitability during turbulent economic cycles.