The US consumer goods giant Procter & Gamble plans to cut around 15 percent of its non-manufacturing jobs in the next two years – equivalent to about 7,000 positions worldwide. The measure is part of a comprehensive restructuring program aimed at increasing efficiency, reducing costs, and streamlining the brand portfolio. CFO Andre Schulten presented the plans at an investor conference in Paris on Thursday.

The manufacturer of brands like Gillette, Ariel, and Pampers is responding to a combination of weak consumer sentiment, geopolitical uncertainty, and increasing margin pressure from US tariffs. Already in April, P&G had lowered its sales and profit forecasts. For the upcoming fiscal year, the company now expects organic growth of only 2 percent – previously 3 to 5 percent was targeted.

At the center of the restructuring are the reduction of management structures, increased use of automation, and a digitized supply chain. P&G expects one-time costs of 1 to 1.6 billion dollars before taxes, but sees the program as a long-term investment in productivity and innovation capability – not merely a reaction to the recent market situation.

In addition to job cuts, Schulten also announced plans to divest from less profitable brands and categories. Which specific product lines are affected remains undisclosed by the company. At the same time, there may be price increases to offset any new tariff burdens – particularly from the US trade conflict with China and tensions in the Middle East. For the current quarter, P&G expects a tariff-related earnings decline of three to four cents per share.

In the first quarter, net sales fell by 2 percent to $19.8 billion – a larger decline than analysts had predicted. Schulten spoke of a "nervous consumer" increasingly deferring consumption expenditures.