This MNC Is Firing 5000 Employees To Cut Costs, Restructure Organization


Mohul Ghosh

Mohul Ghosh

Jun 10, 2025


Consumer goods giant Procter & Gamble (P&G) announced a major restructuring initiative that will lead to 7,000 job cuts, roughly 15% of its nonmanufacturing workforce, over the next two years.

This MNC Is Firing 5000 Employees To Cut Costs, Restructure Organization

The move comes as President Trump’s tariffs inflate costs for global businesses, pressuring P&G’s margins and compelling the company to raise prices and streamline operations.


🏢 Layoffs Target White-Collar Workforce

P&G, known for brands like Pampers, Tide, and Swiffer, employs over 108,000 people worldwide. The announced job cuts will primarily impact corporate and support roles, not manufacturing.

The company’s CFO, Andre Schulten, disclosed the plan during the Deutsche Bank Consumer Conference. He stated the layoffs are part of a strategic plan to “ensure long-term value” despite near-term economic headwinds.


📉 Tariffs Add to Troubles: $600M Expected Drag

One of the key drivers behind the restructuring is the cost burden from ongoing U.S. trade policies. Tariffs are expected to:

  • Drag Q4 earnings by $0.03–$0.04/share
  • Cost P&G $600 million before taxes in fiscal 2026

P&G confirmed it would raise product prices starting July to offset these costs, affecting consumers directly.


📦 Strategic Overhaul: Portfolio, Supply Chain & Markets

P&G plans to:

  • Reevaluate its product portfolio
  • Restructure supply chains
  • Slim down corporate layers
  • Exit certain brands and markets (to be detailed in July’s earnings call)

The company is budgeting $1 billion to $1.6 billion in noncore pre-tax restructuring charges as part of this sweeping revamp.


📉 Wall Street Reacts: Stock Slips

Markets responded cautiously:

  • P&G shares dropped 1% after the announcement
  • The stock is down 2% YTD, underperforming the S&P 500, which is up over 1%
  • P&G’s market cap currently stands at $407 billion

Investors are closely watching upcoming jobs data for broader signs of a slowdown.


⚠️ Industry Trend: P&G Joins Wave of Corporate Layoffs

P&G isn’t alone. Other U.S. corporations announcing layoffs in 2025 include:

  • Microsoft
  • Starbucks

These cuts reflect a tightening job market influenced by inflation, protectionism, and post-pandemic market corrections. With nonfarm payrolls data due Friday, analysts are bracing for further insight into how deep the cuts may go across sectors.



Mohul Ghosh
Mohul Ghosh
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