Why Procter & Gamble Is Cutting 7,000 Jobs Despite Billions in Sales
Procter & Gamble plans to lay off 7,000 employees over the next two years, slashing about 15% of its non-manufacturing workforce as part of what it calls a push toward “digitization and automation.”
The announcement comes as P&G, maker of household staples like Tide detergent, Bounty paper towels, and Pampers diapers, faces a slowing global economy and what it describes as a "challenging environment." But to the average worker, it signals something else: even the biggest and most stable companies are shedding jobs in a rush to cut costs and streamline operations.
The layoffs won’t hit factory workers, but corporate and support staff are in the crosshairs. While P&G didn’t specify which regions or departments would be affected, the scale of the cuts is raising alarms, especially as more companies lean on AI, automation, and smaller teams to "boost productivity."
P&G said it’s aiming for an "even more agile, empowered and accountable" organizational structure, phrasing that may sound familiar to anyone who's been through a round of corporate downsizing. It also hinted at potential "brand divestitures" but declined to say which names might be on the chopping block.
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This move comes on the heels of slumping sales. The company reported $19.8 billion in revenue last quarter, down 2% from the year before. While that’s still a massive haul, it wasn’t enough to prevent cuts. P&G’s next earnings call is scheduled for July 29, and more details are expected then.
It’s not just P&G. Across industries, job cuts are rising fast. In May alone, CBS News reports layoffs across the U.S. jumped 47% compared to last year, according to outplacement firm Challenger, Gray & Christmas. "Companies are spending less, slowing hiring and sending layoff notices, said the firm’s senior VP Andrew Challenger.
For workers, it’s another warning shot in a labor market increasingly shaped by automation, cost-cutting, and corporate buzzwords.
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