P&G to Cut 7,000 Jobs and Raise Prices as Tariff Pressures Reshape Strategy

Procter & Gamble (P&G) announced a major restructuring plan that will reduce its workforce by about 7,000 jobs, or roughly 6%, over the next two years. This move aims to streamline operations as the company exits certain product categories in select markets. The initiative is part of P&G’s strategy to adapt to an increasingly challenging business environment and will involve simplifying organizational structures by broadening roles and shrinking team sizes.

P&G Faces Tariff Pressures And Rising Costs With Pricing Moves And Restructuring Plans

The restructuring comes amid growing uncertainty in consumer demand for 2025, largely influenced by U.S. tariffs imposed under President Donald Trump’s administration. These tariffs have disrupted global supply chains, causing significant cost increases and lost sales for companies including P&G and Unilever. P&G imports some raw materials and finished goods from China but produces about 90% of what it sells domestically, yet still faces an estimated $600 million before-tax hit in fiscal 2026 due to tariffs.

In response to these pressures, P&G plans to raise prices on certain products and focus on cost-cutting measures. CFO Andre Schulten emphasized pricing and operational efficiencies as key levers to mitigate tariff impacts. The company expects to incur between $1 billion and $1.6 billion in charges related to the restructuring, with a significant portion of these charges being non-cash. The company also anticipates that about 15% of its non-manufacturing workforce will be affected by the layoffs.

P&G Accelerates Strategy Amid Global Uncertainty And Focuses On Core Brand Strength

P&G executives acknowledged the unpredictable geopolitical environment, highlighting the uncertainty faced by consumers in the current market. This climate of ambiguity reinforces the need for the company to accelerate its strategic adjustments. The restructuring and selective divestitures are intended to help P&G maintain competitiveness despite the volatile external conditions caused by trade tensions and global economic shifts.

Part of the restructuring involves divesting certain brands to better align the supply chain and reduce operational costs. By exiting less profitable product categories and markets, P&G aims to focus on core brands and streamline production and distribution processes. These moves are expected to position the company for more sustainable growth while managing costs effectively in a difficult economic environment.