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This will account for about 15% of the current non-manufacturing workforce, with P&G sharing that employee separations "will be managed with support and respect, and in line with our principles and values and local laws."
Procter & Gamble (P&G) has announced it will reduce up to 7,000 non-manufacturing roles globally over the next two fiscal years, accounting for approximately 15% of its non-manufacturing workforce.
This workforce change is part of a broader restructuring plan designed with an aim to improve productivity, streamline operations, and strengthen the company’s long-term growth strategy. The company affirmed that employee separations will be managed with support and respect, and in line with its principles, values, and local laws. Specific impacts by region or site have not been disclosed at this stage.
The update was shared during the 2025 Deutsche Bank Global Consumer Conference on Thursday (5 June 2025), where Andre Schulten, Chief Financial Officer, and Shailesh Jejurikar, Chief Operating Officer, outlined steps to refine the company’s portfolio, optimise its supply chain, and redesign its organisational structure.
Changes under these three main areas of focus are as follows:
- Portfolio: P&G will exit certain categories, brands, and product forms in specific markets. Some brand divestitures may also take place. More details will be provided in the coming months.
- Supply chain: These portfolio moves will support efforts to right-size and relocate production. The aim is to enhance efficiency, accelerate innovation, reduce costs and improve supply chain resilience.
- Organisation design: The company will move towards a more agile and accountable organisation design. This includes broader roles, smaller teams, and greater use of digitisation and automation to improve how work gets done.
These combined efforts are intended to widen P&G’s margin of advantage in product superiority, while supporting growth and value creation. The plan will be rolled out over the next two fiscal years.
To support its long-term ambitions, P&G will launch a two-year productivity initiative starting in fiscal 2026. This is positioned as an acceleration of the company’s existing strategy, rather than a new direction.
P&G noted that it is entering this transformation from a position of strength. In fiscal 2024, the company achieved its sixth consecutive year of 4% or better organic sales growth. It also recorded its eighth consecutive year of 2% or better Core EPS growth, averaging nearly eight percent over that period.
During the first three quarters of fiscal 2025, Core EPS growth stood at 3%, which is in line with the company’s guidance of 2% to 4% for the year. Over the same period, P&G returned more than US$13bn to shareowners through dividends and share repurchases. A 5% dividend increase was announced in April 2025, marking the 69th consecutive annual rise.
Looking ahead, P&G acknowledged a more complex business environment marked by shifting consumer behaviours, rising competition and geopolitical uncertainty. The company sees opportunities to expand brand reach in underserved markets, grow consumption across regions, and increase market penetration.
To seize these growth opportunities while navigating near-term challenges, P&G said it is focusing on disciplined execution of its integrated growth strategy, supported by careful allocation of both human and financial resources.
Lead image / P&G website
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