Procter and Gamble will lay off 7,000 employees in 2 years
Procter and Gamble joins the cuts of large companies in the United States and will lay off 7,000 workers to reduce costs in the next two years
"There will be additional changes to ensure an even more agile, empowered, and responsible organizational design," the company said.
In addition, it highlighted that it will rely on digitalization and automation as part of its transformation plan.
Along with the staff reductions, the company also indicated that there will be adjustments to its brand portfolio. This could include the sale of some brands, although specific names were not given.
"Further details will be shared in the coming months," the statement said.
In April, the company reported a 2% drop in net sales for the fiscal third quarter, reaching $19.8 billion. This decline is attributed to a challenging global economic environment characterized by a slowdown in consumer spending and geopolitical tensions.
Its next earnings presentation is scheduled for July 29, a date when more information about the company's strategic direction is expected to be known.
"Companies are spending less, slowing hiring, and sending out layoff notices," Andrew Challenger, a senior vice president at the firm, said in an email.
Despite official figures showing strength in the labor market, which could indicate that we are not in a recession, corporate decisions are heading in another direction. In fact, we recently addressed a controversial topic about people who are functionally unemployed and who are not counted in government statistics.