Consumer goods giant Procter & Gamble will cut 7,000 jobs globally over the next two years as it deals with increased economic pressures.
The company, which runs brands such as Pampers and Ariel, is embarking on a restructure that will cut approximately 6% of its workforce, or 15% of its non-manufacturing workforce.
Speaking at a consumer conference on Thursday, chief financial officer Andre Schulten said: “This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years.
“It does not, however, remove the near-term challenges that we currently face.”
The company said it was dealing with US tariff-related costs and customers who were dealing with cost-of-living pressures.
In April, P&G stated that it was experiencing the impact of US tariffs on raw and packaging materials, as well as some finished products sourced from China, which has been heavily affected by President Trump’s tariffs.
It said it would look at different sourcing options and ways to improve productivity, but it would still have to raise prices and potentially look at other efficiencies.
The company employs around 2,500 employees in the UK, but has not yet specified where the job cuts will be made.
Schulten said the restructuring programme would begin in the second half of this year, including slimming down management teams and using more automation and digitisation.
Net sales in the first three months of the year fell 2% to $19.8bn (£14.6bn|), a bigger than forecast drop, he added.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR opportunities in the FMCG sector on Personnel Today
Browse more HR opportunities in the FMCG sector
