P&G Layoffs Put 7,000 Jobs on the Line
What is the reason for P&G layoffs?
Procter & Gamble (P&G), the multinational behind household names like Pampers and Tide has announced a sweeping restructuring plan that includes cutting 7,000 jobs over the next two years. That’s about 6% of its global workforce, with most of the impact expected to hit non-manufacturing roles.
The announcement comes amid mounting economic uncertainty and volatile global trade conditions. With U.S. tariffs adding pressure on global supply chains and pricing, companies like P&G and its rival Unilever are bracing for what they expect to be a slower 2025 in terms of consumer demand.
According to executives, this isn’t a new direction, it’s an acceleration of their existing strategy to stay competitive in what they describe as an increasingly difficult global market.
How Are Tariffs Driving This Decision?
P&G’s business is feeling the sting of the ongoing U.S.-China trade tensions. While about 90% of what the company sells in the U.S. is made domestically, some raw materials, packaging, and finished products still come from China. That means import tariffs are biting into profit margins.
The company estimates a $600 million pre-tax impact in fiscal 2026 due to current tariff levels, no small hit.
A recent Reuters analysis found that the global trade war has already cost companies over $34 billion in lost sales and higher expenses, and that number is only expected to grow. P&G is among many global giants now raising prices, cutting costs, and exiting certain markets or product categories to protect profits.
How Is P&G Responding?
P&G is preparing to “pull every lever” to soften the blow. According to CFO Andre Schulten, this means a mix of price increases and cost-cutting measures, including job reductions. The company is also re-evaluating where it operates and what it sells, trimming down product lines in underperforming markets.
As of June 30, 2024, P&G had roughly 108,000 employees. The cuts will affect about 15% of its office-based (non-manufacturing) staff, a significant shift. While the full details of which locations or roles will be hit haven’t been released, the tone from executives is clear: change is coming, and fast.
The restructuring will unfold over the next two years, as P&G aims to weather economic turbulence and adjust to shifting consumer behaviours. The geopolitical climate, described by company leaders as “unpredictable,” continues to drive uncertainty not just for shareholders, but also for thousands of employees caught in the middle of global trade tensions.
Affected by P&G’s Layoffs?
If you’ve been impacted by Procter & Gamble’s recent announcement to cut 7,000 jobs, you may be entitled to more than just a standard severance offer, especially if you work in corporate, marketing, finance, or product management roles.
In Ontario, non-unionized employees may qualify for significantly higher compensation than what is initially offered. Your severance entitlements depend on factors such as length of service, age, position, and total compensation and in some cases, you could be owed up to 24 months’ pay.
At Whitten & Lublin Employment Lawyers, we’ve represented professionals across major industries facing restructuring and mass terminations. If you’ve been impacted by the P&G’s downsizing, call us at (416) 640-2667 or reach out online for consultation.