P&G to Cut 7,000 Jobs, Exit Some Brands in Response to Global Economic Adversity and Consumption Slowdown

P&G announced plans to cut 7,000 jobs and exit some brands and product categories over the next two years in response to global economic uncertainty and weak consumer demand.

P&G's restructuring plan was unveiled at the Deutsche Bank Consumer Conference and will affect about 6% of its global employees, accounting for about 15% of its non-manufacturing positions. The company aims to simplify operations, reduce costs, and reallocate resources to its core beauty and personal care brands, including Olay, Old Spice and Head & Shoulders.

P&G said that continued tariff pressure, turbulent geopolitics and slowing spending are major challenges. As part of the streamlining plan, the company has exited certain markets such as Argentina and divested brands such as Vidal Sassoon in China.

The strategic adjustment marks a shift in P&G's focus to prioritize the development of high-margin, high-growth personal care businesses while divesting slower-performing brands and businesses. For the beauty industry, this reflects a general trend towards a greater focus on brand equity and resilience amid rising operating costs and shifting global demand.