Procter & Gamble (P&G), the global consumer goods titan behind household names like Tide, Pampers, and Gillette, announced a significant restructuring plan on June 5, 2025, that will see the company cut 7,000 jobs over the next two years. This reduction represents about 15% of its non-manufacturing workforce and roughly 6% of its total 108,000 employees as of June 2024. The announcement was made during a presentation at the Deutsche Bank Global Consumer Conference in Paris, delivered by CFO Andre Schulten and COO Shailesh Jejurikar.
While layoffs of this scale often raise alarms about cost-cutting in troubled companies, P&G emphasized that these cuts are part of a broader reorganization strategy aimed at accelerating growth and value creation rather than merely trimming expenses. According to Schulten, "The opportunity to accelerate that innovation pipeline, make the right investments and capture that growth opportunity, I think created that urgency in the organization to say now is the time." The company is looking to unlock significant growth by better serving currently unserved and underserved consumers, expanding into new market segments, and elevating growth in existing markets to best-in-class levels.
This move comes amid a challenging economic backdrop for P&G, marked by uneven consumer demand and rising costs associated with tariff uncertainties. The company reported a 2% decline in revenue in the quarter ending March 31, 2025, after enjoying several years of stable revenue growth that reached $84 billion in 2024. P&G also indicated it might implement price increases later in 2025 to offset higher operational costs. CEO Jon Moeller noted in an April interview with CNBC that price hikes were "likely" but expected to be delayed until summer.
In addition to workforce reductions, P&G is considering brand divestments as part of its restructuring program. This suggests the company is evaluating its portfolio to focus on core brands and innovation-driven growth opportunities. The company warned investors that these strategic changes might temporarily reduce sales growth as it sells or discontinues certain brands and products, but it expects to capture up to $25 billion in new growth opportunities through innovation and investment.
The layoffs will be implemented thoughtfully over the next two fiscal years, allowing P&G to sequence important innovation and operational projects without disrupting its core business. "Plans will be implemented over the next two fiscal years, allowing us appropriately sequence the delivery of important innovation and operational projects," Jejurikar explained during the conference. The company also assured that employee separations would be managed with support and respect, adhering to company values and local laws. Specific details about the regional or site-specific impact of these layoffs have not been disclosed, including in Cincinnati, where P&G employs approximately 10,000 workers.
Cincinnati Vice Mayor Jan-Michele Lemon Kearney, reflecting on the company's local impact, highlighted P&G’s reputation for treating its employees fairly. "Procter and Gamble has a great reputation of taking care of its employees, so let’s start with that," she said. She also emphasized the thoughtful nature of the process, contrasting it with abrupt government layoffs: "This is not like the federal government that just came in and told people, ‘Pack up and leave.’ We’re talking about a thoughtful two-year process." This statement underscores the company’s intention to handle the restructuring with care and transparency.
Founded over 180 years ago as a soap and candle company, P&G has evolved into the world’s largest consumer goods company, maintaining its headquarters in Cincinnati, Ohio, since 1837. Its long history and deep roots in the community add weight to the current restructuring, which aims to position the company for future success in a rapidly changing marketplace.
The decision to cut jobs and restructure comes as technology continues to reshape the consumer goods landscape. Schulten and Jejurikar noted that technology is a key driver behind the company’s transformation. "Technology was changing the company," they said during their presentation, highlighting the need to adapt to new consumer behaviors and market dynamics.
While the job cuts and brand divestments may raise concerns, P&G’s leadership is framing these moves as proactive steps to ensure the company’s long-term competitiveness. By focusing on innovation, streamlining operations, and targeting new growth areas, P&G aims to delight consumers, customers, employees, society, and shareholders alike.
More details about the restructuring plan are expected in P&G’s upcoming earnings calls, where the company will provide further insights into how it plans to navigate these changes and capitalize on emerging opportunities. For now, the company is balancing the difficult task of workforce reduction with a clear vision for growth and innovation.
In a world where consumer preferences are shifting rapidly and economic pressures persist, P&G’s restructuring reflects broader trends affecting many legacy consumer brands. The company’s approach—combining job cuts, brand portfolio adjustments, and a push for innovation—illustrates the complex balancing act required to stay relevant and profitable in today’s market.
As P&G embarks on this two-year journey, the outcomes will be closely watched by investors, employees, and the communities where it operates. The company’s ability to manage this transition thoughtfully while capturing new growth opportunities will be critical to maintaining its leadership in the consumer goods sector.
