Procter & Gamble (PG.N), the manufacturer of Tide detergent, has said that it will eliminate 7,000 positions over the next two years due to an uncertain spending climate that has been exacerbated by U.S. tariffs that have affected many consumer companies.
As part of the larger two-year reorganization plan, the largest consumer products corporation in the world also intends to depart various product categories and brands in specific markets, including some possible divestitures.
“This is not a new approach, rather an intentional acceleration of the current strategy… to win in the increasingly challenging environment in which we compete,” executives stated Thursday during a Deutsche Bank Consumer Conference in Paris.
P&G described the layoffs, which affect around 6% of its personnel, as a component of its ongoing strategy.
Interestingly, at the conference, CFO Andre Schulten and operations chief Shailesh Jejurikarstated that the geopolitical landscape was “unpredictable” and that consumers were dealing with “greater uncertainty.”
Global markets have been rocked by President Donald Trump’s sweeping tariffs on trading partners, which have also raised fears of a U.S. recession.
Based on current tariff rates, P&G projected a pre-tax blow of roughly $600 million in its fiscal year 2026 on Thursday. This figure has changed multiple times.
According to a Reuters investigation, businesses have lost at least $34 billion in sales and increased expenses as a result of the trade war.
Schulten stated that P&G was ready to “pull every lever” in its toolbox to lessen the effects of tariffs, mainly through cost-cutting and price increases, after the company announced in April that it would hike prices on a few items.
