P&G to lay off 7,000 white-collar employees in HR, legal and more: Here’s when
Procter & Gamble Co. (P&G) has announced plans to cut as many as 7,000 jobs across its non-manufacturing functions—including departments such as HR, finance, legal, and R&D—as part of a sweeping initiative to improve productivity and manage rising operational costs.
The layoffs, to be implemented over the next two years, will account for about 15% of the company’s global non-manufacturing workforce, the US consumer goods giant revealed in a presentation published on its corporate website.
The decision comes as P&G, the maker of global brands like Old Spice, Gillette, and Crest, faces mounting financial headwinds. These include weaker consumer demand, rising tariff-related expenses, and the broader inflationary environment affecting industries worldwide.
In its most recent earnings report, P&G lowered its financial guidance, citing an expected $1 billion to $1.5 billion in incremental costs—a figure tied to increased raw material prices, shipping costs, and tariffs. Though the company has responded by raising product prices, that alone has not been enough to offset the pressure.
As a result, the company is now turning inward, cutting costs through organisational restructuring that targets non-revenue-generating departments.
Who Will Be Affected?
The company clarified that the layoffs will not impact its manufacturing operations. Instead, the reductions will be concentrated in corporate functions such as:
-
Finance and Accounting
-
Legal and Compliance
-
Research & Development (R&D)
-
Corporate Affairs and IT
These roles, while critical to long-term growth, are being reviewed for potential overlap, redundancy, or restructuring opportunities.
The move is part of a larger digital transformation and productivity drive within P&G, aimed at simplifying workflows, automating routine tasks, and aligning resources more closely with growth areas.
P&G joins a growing list of multinational firms streamlining operations amid global economic uncertainty. The fast-moving consumer goods (FMCG) sector, typically considered stable during downturns, has not been immune to the effects of shifting consumer behaviours, inflation, and geopolitical trade tensions.
