Proctor & Gamble to cut 6,000 jobs in merger with Gillette

Consumer goods giant Procter & Gamble expects to cut 6,000 jobs, after agreeing a £30bn merger with health and beauty product manufacturer Gillette.

The deal, one of the largest mergers in corporate history, will be paid for mainly in P&G shares, and will see 4 per cent of the combined workforce of 140,000 leaving.

It will make P&G the world’s biggest household goods maker, pushing Unilever into second place.

The combined business will have 21 brands each generating annual sales of more than £1bn, with the number one global market position in product categories representing about two-thirds of total sales.

AG Lafley, chairman, president and chief executive of Procter & Gamble, said: “This combination of two best-in-class consumer products companies, at a time when they are both operating from a position of strength, is a unique opportunity.

“Gillette and P&G have similar cultures and complementary core strengths in branding, innovation, scale and go-to-market capabilities, making it a terrific fit.”

The deal requires shareholder and regulatory clearance, and is expected to be complete by autumn of this year.

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